General Permission for Foreign Investment in REIT: State Bank of Pakistan
KARACHI: The State Bank of Pakistan (SBP) approved broad permission for foreign investment in real estate funds listed on the nation’s stock exchange on March 26, 2023.
Non-residents can now invest in Real Estate Investment Trust (REIT) plans through fresh public offerings or stock exchange-listed REIT schemes.
The central bank said that REIT Management Companies (RMCs) will now be given a universal license to offer their units through private placements and transfer those units to non-residents to attract international investment in REITs further.
In simple terms, this means that RMCs will now have the opportunity to issue their units to non-residents through private placements, a type of securities offering that is not available to the general public.
This modification aims to facilitate international REIT investment and boost foreign participation.