Pakistan’s Citi Pharma Enters Real Estate Investment Sector with New Subsidiary

In its notification to the Pakistan Stock Exchange (PSX), the pharmaceutical manufacturer described the approval as a significant milestone in its strategic expansion into Pakistan’s real estate investment sector. Following the name reservation, the company will proceed with the formal incorporation of the REIT Management Company and initiate the regulatory process for the formation, registration, and launch of a Real Estate Investment Trust (REIT), subject to obtaining all necessary approvals, licenses, and consents from the SECP and other relevant authorities.

The establishment of CITI REIT Management Company (Private) Limited reflects Citi Pharma’s long-term strategy to diversify its business portfolio and capitalize on emerging opportunities in the real estate and capital markets. The proposed REIT platform is expected to facilitate transparent and regulated real estate investments while creating sustainable value for shareholders and investors.

Under the proposed platform, the company plans to undertake three major real estate development projects. The first project is envisaged at Hali Road, Lahore, followed by a second development on Citi Pharma’s land at Khayaban-e-Zafar, Lahore, and a third project on company-owned land near Islamabad International Airport.

Subject to the receipt of all required regulatory approvals and adherence to projected timelines, completion of the projects is anticipated by the end of the first quarter of Financial Year 2026–27.

Citi Pharma Limited has estimated the total value of land to be contributed as its investment in the REIT Management Company at approximately Rs7 billion. This valuation represents the land investment and is expected to be realized progressively as the respective projects are launched and executed.

In addition to recovering the land value, the company will also be entitled to receive its proportionate share of annual dividends from the REIT Management Company, providing an ongoing return on investment beyond the value of its land contribution. – ER News Desk

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