- Globe Residency REIT(GRR) and MBL has entered into a Musharakah Agreement.
- They plan to develop 3 apartment towers consisting of 408 apartments of 2 bedrooms.
- Construction of towers is already underway, and their grey structure is expected to be ready in 18 months.
To jointly develop and sell apartment towers at Naya Nazimabad in Karachi, Arif Habib Group (AHG) and Meezan Bank (MBL) have entered into a partnership, The News reported, citing a statement issued in this regard.
According to the joint statement, the collaboration would allow customers to opt for the Shariah-compliant home financing services offered by MBL.
MBL has entered into a Musharakah Agreement with Globe Residency REIT(GRR) for the development of three apartment towers consisting of 408 apartments with two bedrooms.
“Construction of the towers is already underway, and their grey structure is expected to be ready in eighteen months,” the joint statement said.
GRR is being managed by Arif Habib Dolmen REIT Management Limited and Arif Habib Real Estate Development Company is the development advisor.
In total, GRR is constructing nine towers, which were launched in November 2021 and would be ready for possession within three years. Some 642 apartments have already been booked by the general public out of 836 offered in November 2021. REIT units will also be listed on the Pakistan Stock Exchange (PSX), soon offering them to the general public for investment, it revealed.
Under the mortgage finance facility, customers will be able to make payments over 20 years, similar to making monthly rental payments.
According to MBL, it is participating for 50% share in three towers out of nine towers being developed by GRR through the Musharakha arrangement. Both MBL and GRR shall contribute 50% each for the cost of construction of these apartments. “All regulatory approvals from the SECP and SBCA are in place.
Central Depository Company of Pakistan Limited (CDC) is the trustee and AF Ferguson (PWC) are auditors of GRR.”
The agreement was signed by Arif ul Islam, deputy CEO of MBL, Badiuddin Akber, CEO of CDC, Samad Habib, CEO of Javedan Corporation Limited (JCL), and Muhammad Ejaz, CEO of Arif Habib Dolmen REIT Management Limited.
Also present on the occasion were Arif Habib, chairman of JCL and Muhammad Irfan Siddiqui, president and CEO of Meezan Bank Limited.
Irfan Siddiqui said, “Meezan Bank strives to offer its qualified customers Shariah-compliant banking solutions and services. Many of our customers wish to own their homes and we are pleased to be able to provide them Islamic Mortgage mode of financing for Apartments at Naya Nazimabad that will offer a convenient, affordable and Shariah-compliant way to obtain a home of their dreams.”
Arif Habib commented that it was a landmark real estate transaction opening the doors of housing development in the country for the middle-class population through mortgage financing mode between an Islamic bank and a REIT scheme.
“It is hoped that many more such transactions will take place between banks and REITs to facilitate the general public.”
Naya Nazimabad is an integrated housing scheme in the city that is planned to house more than 50,000 families upon its completion.