KARACHI: Arif Habib Group (AHG) and Meezan Bank Limited (MBL) have entered into a strategic partnership to jointly develop and sell apartment towers at Naya Nazimabad under Musharakah mode.
This collaboration will allow customers to opt for the Shariah-Compliant home financing services offered by MBL. Meezan Bank has entered into a Musharakah agreement with Globe Residency REIT (GRR), for development of 3 apartment towers consisting of 408 apartments of 2 bedrooms. Construction of towers is already under way and their grey structure is expected to be ready in 18 months.
The GRR is being managed by Arif Habib Dolmen REIT Management Limited and Arif Habib Real Estate Development Company is the development advisor. In all, the GRR is constructing nine towers, which were launched in November 2021 and will be ready for possession within 3 years. 642 apartments have already been booked by general public out of 836 offered in November 2021. REIT units will also be listed on PSX, soon offering them to general public for investment.
Under the mortgage finance facility customers will be able to make payments over 20 years, similar to making monthly rental payments. The process is open and transparent, making real estate more accessible to middle class customers.
Meezan Bank is participating for 50 percent share in 3 towers out of 9 towers being developed by GRR through the Musharakah arrangement. Both MBL and GRR shall contribute 50% each for the cost of construction of these apartments. All regulatory approvals from SECP and SBCA are in place. Central Depository Company of Pakistan Limited (CDC) is the trustee and A.F. Ferguson (PWC) are Auditors of GRR.
The signing agreement ceremony was held on Thursday at Naya Nazimabad and signed by Arif ul Islam, Deputy CEO MBL, Badiuddin Akber CEO CDC, Samad Habib CEO, Javedan Corporation Limited (JCL) and Muhammad Ejaz CEO Arif Habib Dolmen REIT Management Limited. On the occasion, Arif Habib, Chairman JCL and Muhammad Irfan Siddiqui President and CEO Meezan Bank Limited were also present.
Meezan Bank President Muhammad Irfan Siddiqui speaking at the occasion said that 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,” he added.
Arif Habib Chairman JCL said that Naya Nazimabad works relentlessly to offer quality lifestyle to its residents. This is a landmark real estate transaction opening the doors of housing development in Pakistan 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.
“We are pleased to partner with Meezan Bank to provide home financing product exclusively designed for apartments at Naya Nazimabad. Making our housing project accessible to the wider community is a significant part of our vision and we believe Meezan Bank will be a key partner in helping us.”
Copyright Business Recorder, 2022
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