PACRA Upgrades Entity Rating of Imperium Hospitality (Private) Limited

Imperium Hospitality (Private) Limited ("IHPL" or "the Company") is primarily engaged in the development of premium commercial real estate. The Company’s flagship project, Imperium Tower, has successfully transitioned from development to operations following the completion of Block B. The ratings upgrade reflects IHPL’s strengthened business profile, supported by the establishment of a recurring rental-based revenue model. IHPL has developed a modern twin corporate tower that has emerged as a prominent landmark in Lahore’s skyline. The ratings derive support from the strong sponsor backing of the Monnoo Group, a diversified business group with established operations across textile, real estate, power, and agriculture, providing financial strength and strategic depth to the Company. Pakistan’s real estate sector is demonstrating gradual stabilization amid improving macroeconomic conditions. Easing inflationary pressures and a relatively softer interest rate environment have supported recovery prospects, particularly in the commercial rental segment, while the broader sector outlook remains stable despite structural challenges. Imperium Tower spans approximately 341,351 square feet and comprises two sections: Block A and Block B, each consisting of four basements, a ground floor, and eighteen upper floors. Block A was handed over to Fauji Fertilizer Company Limited (FFC) in FY24, generating ~PKR 3.7bln and materially strengthening the Company’s equity base. Following the completion of Block B, IHPL has successfully operationalized the tower and secured reputable corporate tenants under long-term lease arrangements. The tower is currently ~97% occupied, reflecting strong demand fundamentals and providing enhanced revenue visibility through contracted rental inflows. The completion and stabilization of the asset have significantly reduced execution risk and strengthened the Company’s overall operating profile. Sponsor commitment remains evident through continued financial support. As of Dec’25, total borrowings declined to approximately PKR 398mln (Jun’25: PKR 416mln). Leverage stood at ~39.9% as of Dec’25, with absolute debt levels trending downward and supported by a strong equity base of ~PKR 2.1bln. Although coverage metrics remained modest during the transition phase, the initiation of recurring rental inflows marks a positive structural shift in the Company’s financial risk profile.
Going forward, the ratings are contingent upon achieving higher occupancy levels in Block B, further strengthening rental cash flows, and maintaining a prudent capital structure, along with improving coverage indicators.

About the Entity
Imperium Hospitality (Pvt.) Limited (‘IHPL’ or ‘the Company’) was incorporated in 2016 as a private limited company. In 2019, the Company launched its flagship commercial real estate project, Imperium Tower. IHPL is wholly owned by the sponsoring family. M/s Kaisar Shahzada (Private) Limited holds 36% shareholding, while Mr. Danish Kaisar Monnoo, Mr. Sheraz Jehangir Monnoo, and Mr. Shahbaz Alam Monnoo each hold 21%. Mr. Sheraz Jehangir Monnoo (CEO & Director) brings over 20 years of business experience and leads the Company with the support of a qualified management team, including Mr. Muhammad Shahbaz (CFO), a Chartered Accountant overseeing financial management and controls.