Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its rating for TPL REIT Management Company Limited, reflecting an adequate financial profile and capital base supported by a governance structure anchored by an experienced board. TPL REIT Management launched Pakistan's first Hybrid Shariah-compliant REIT, "TPL REIT Fund I," in December 2021. The fund achieved its first close at PKR 18.35 billion and was fully drawn by June 2024, before its listing on the Pakistan Stock Exchange.

Initially comprising three projects housed in separate Special Purpose Vehicles, TPL is now focusing on portfolio optimization by divesting certain assets. The Technology Park Project, held through TTZ Pvt. Ltd, has reached an advanced stage in the divestment process. Additionally, TPL REIT Fund I signaled its intent to divest the One Hoshang Project by November 2025.

These strategic moves have led to increased concentration risk, with the Fund now relying on the Mangrove project, a waterfront mid-rise residential community. This shift places emphasis on the timely execution of the remaining asset to ensure rating sustainability amid a gradual recovery in Pakistan's real estate sector.

In fiscal year 2025, TPL-RMC's financials showed an equity base of PKR 1,679 million, with revenue strengthening due to management fee income, leading to a profit after tax of approximately PKR 190 million. The company also boosted its investment position to attract potential foreign investments.

The ratings remain contingent on the successful execution of the Mangrove project, with PACRA highlighting the need for TPL-RMC to maintain strong governance and adhere to regulatory standards. The agency expects the company to enhance its operational framework and financial sustainability, ensuring continued progress on the ongoing project within set timelines.