SECP amends REIT regulations to boost investment in real estate sector
ISLAMABAD: Security Exchange Commission of Pakistan (SECP) today (Tuesday) has amended the Real Estate Investment Trusts Regulations 2015 and has introduced a new framework for Public-Private Partnership (PPP) under REIT.
According to the details, the new amendments have made changes to the existing regulatory framework in which disclosure-based issuance has replaced approval-based issuance.
Furthermore, the new regulatory framework is designed to lessen the entry barriers for new REITs and to increase foreign investment in the real estate sector.
As per the notification, the documentation and system of approvals have also been made easier for the new REITs. A REIT Scheme has been made eligible to invest directly or by acquiring the shares of the company.
Simultaneously, SECP has also made changes to the SPV model in which the condition of transfer of title has been omitted.
The commission has also allowed PPP REITs to develop new infrastructure projects in consortium with the government.
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