Press Release
VIS Reaffirms Development REIT Rating of Globe Residency REIT
Karachi, April 23, 2026: VIS Credit Rating Company Limited (VIS) reaffirms the Development REIT rating of Globe Residency REIT (‘GRR’ or the ‘Scheme’) at ‘RFR2 (dr)’ (REIT Fund Rating Two (Development REIT). The development REIT rating of ‘RFR2 (dr)’ indicates successful implementation of REIT project is very likely. Risk factors impacting value of REIT assets are modest over the foreseeable future. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on February 12, 2025.
GRR is a closed-end development REIT and was established under the Trust Deed dated December 24, 2021. The Project has been acquired from Javedan Corporation Limited and as per the approval from SECP the Project was transferred to the REIT structure, effective April 1, 2022. The REIT was listed on the Pakistan Stock Exchange Limited (PSX) on December 28, 2022, under the REIT Regulations, 2022. The project is managed by Arif Habib Dolmen REIT Management Limited, with Central Depository Company of Pakistan Limited as its trustee. GRR’s primary objective is the construction of 9 apartment towers at Naya Nazimabad, Karachi, covering a land area of 40,500 sq. yards.
Assigned rating of GRR reflects its association with the established Arif Habib Group, providing strong sponsor backing, relevant experience in REIT management through Arif Habib Dolmen REIT Management Limited, and a sound governance framework supported by an experienced board and management team. The REIT benefits from its strategic location within Naya Nazimabad, Karachi, and improving sales momentum, particularly during 1HFY26, driven by easing interest rates and overall improving economic outlook. However, the REIT remains exposed to an inherent risk of execution, common in development- stage projects, including dependence on timely construction completion and sustained sales absorption. The GRR’s lag in construction timelines reflects deliberate scope expansion undertaken following amendments in the Karachi Town Planning and Building Regulations, supporting enhanced project scale and value. Liquidity is supported by steady customer inflows, satisfactory recovery levels, and access to external financing, though it is partially constrained by the dividend payouts during the development phase. Coverage indicators remain sensitive to sales progress and collection efficiency. Going forward, continued improvement in demand dynamics, sustained sales momentum, project execution and timely recoveries will remain important, amidst evolving macroeconomic environment.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: REIT Fund Rating
https://docs.vis.com.pk/Methodologies-2025/REIT-Fund-Rating-Methodolgy-Jan-2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf