Press Release

VIS Reaffirms RMC Management Quality Rating of Shields REIT Management Company Limited

Karachi, December 05, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the REIT Management Company (RMC) Management Quality Rating (MQR) of Shields REIT Management Company Limited (‘SRMC’ or the ‘RMC’) at ‘AM4+ (RMC)’ (AM Four Plus (REIT Management Company)). The Management Quality Rating (RMC) of ‘AM4+ (RMC)’ indicates that the asset manager exhibits adequate management characteristics. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on November 01, 2023.

SRMC was established in July 2022 as a Public Limited Company under the Companies Act, 2017, and received its license from the Securities and Exchange Commission of Pakistan (SECP) in April 2023. SRMC functions as a subsidiary of Shields (Private) Limited (SPL), a real estate-focused company affiliated with the Abdullah Dadabhoy Group of Companies, which holds a 79.99% stake in the RMC. The Group, which owns a significant land portfolio in Karachi, intends to launch three major housing projects and introduce real estate investment trust (REIT) funds through SRMC. The primary objective of SRMC is to establish REIT schemes and provide REIT management services in line with the REIT Regulations, 2022.

The assigned rating reflects SRMC's status as a newly established entity with no recorded revenue to date and its ongoing initiatives to list three Development REIT funds. The rating is supported by the sponsor group’s established profile and experience in the real estate sector, alongside the effective implementation of the corporate governance framework and IT infrastructure aligned with operational requirements.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: REIT Management Company

https://docs.vis.com.pk/docs/REITManagement-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright December 05, 2024 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.