Pakistan’s Citi Pharma targets real estate growth with new subsidiary

Citi Pharma Limited, a Pakistani pharmaceutical company, has formally entered Pakistan’s real estate sector after securing Securities and Exchange Commission (SECP) approval to establish a wholly owned REIT management subsidiary, marking a strategic diversification beyond its core pharmaceutical business.

The pharmaceutical shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“SECP has granted approval for the reservation of the name ‘CITI REIT Management Company Limited’, which will be established as a wholly owned subsidiary of Citi Pharma Limited,” read the notice.

Following the name reservation, the company shall now formally proceed with the 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 requisite approvals, licenses and consents from the SECP and other relevant regulatory authorities.

“The establishment of CITI REIT Management Company (Private) Limited reflects the company’s long-term vision to diversify its business portfolio and capitalise on emerging opportunities in Pakistan’s real estate and capital markets.

“The proposed REIT structure is expected to facilitate transparent and regulated real estate investments, while creating value for shareholders and investors,” read the notice.

CPHL shared that under the proposed platform of CITI REIT Management Company (Private) Limited, the company plans to undertake three major real estate development projects.

“The first project is envisaged to be developed at Hali Road, Lahore, followed by a second project on Citi Pharma Limited’s land situated at Khayaban-e-Zafar, Lahore and a third project on the company’s land located near Islamabad international airport,” read the notice.

CPHL shared that the completion of these projects is anticipated by the end of the first quarter of FY2026-27.

“The total value of land to be contributed by Citi Pharma Limited as its investment in Citi REIT Management Company Limited (CRMC) is estimated at approximately Rs7 billion.

“This amount represents the valuation of the land investment and is expected to be realised by Citi Pharma Limited progressively as and when the respective projects are commenced and executed,” read the notice.

In addition to the recovery of the land value, CPHL added that it would also be entitled to receive its proportionate share of annual dividends from CRMC, over and above the value of its land contribution, thereby providing an ongoing return on investment.