This further delayed the approval process The Offering of First REIT in

This further delayed the approval process the

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share of land. This further delayed the approval process. The Offering of First REIT in Pakistan Arif Habib Group had a stake in the Dolmen Mall and Harbour Front through a 20 per cent shareholding in International Complex Projects Limited (ICPL), the original holder of the properties (while the other 80 per cent was with Dolmen Group). The Mall became operational in 2011 and was almost fully occupied by 2014. This raised the Group’s confidence that these state-of-the-art properties would be ideal for a REIT. As a result, Arif Habib Dolmen REIT Management remained committed to the launch of the DCR. One of the impediments to the launch of the REIT earlier was the prevailing high interest rate scenario in the country which made the return on a rental REIT unattractive for investors. The falling interest rates in 2014–2015; however, created a favourable environment for the launch of the REIT. The combined capital market expertise of Arif Habib Group and real estate expertise of Dolmen Group (the property manager) also contributed to investor confidence in the REIT venture. The REIT registration documents were subsequently filed with the SECP and approved in June 2015. The book building and the IPO process commenced in the same month. Limited roadshows were conducted primarily targeting institutional investors who were believed to be major potential investors in the IPO. The book building portion of the IPO of DCR was conducted during 8–9 June 2015. The issue was oversubscribed 1.7 times, resulting in the strike price of PKR 11 per unit. Banks with provisional allocation of 63.7 per cent units were the largest recipients of units in the book building phase. The IPO shares were made available for general public subscription on 12 June 2015. Table 1 shows the factsheet of DCR and Exhibit 2 shows the initial set of financial statements of DCR. Figure 1 shows the structure of DCR REIT. Table 1. Factsheet of Dolmen City REIT Name of the REIT Dolmen City REIT Nature of the scheme Perpetual, rated, listed, closed-end Shariah compliant rental REIT REIT management company Arif Habib Dolmen REIT management limited Listing Karachi Stock Exchange Limited (KSE), Lahore Stock Exchange Limited (LSE) and Islamabad Stock Exchange Limited (ISE) Instrument Units of Dolmen City REIT (In PKR 10 denominations) Purpose The REIT Scheme has acquired two components of the Dolmen City Project with the objective of generating rental income for unit holders The REIT Scheme may further generate gains for the unit holders from selling the real estate or parts thereof, with prior written approval from the SECP Project snapshot The project is located at commercial plot No. HC-3, Block 4, Scheme No. 5, Marine Drive, Clifton, Karachi. The REIT scheme comprises: The Harbour Front, a 19 storey Office Building with a built area of approximately 270,273 square feet Dolmen City Mall, an international standard shopping mall with a built area of approximately 1.29 million square feet (Table 1 continued)
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Seyyed et al. 135 Name of the REIT Dolmen City REIT Fund size PKR 22,237 million
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