Press Release

VIS Assigns Initial Entity Rating to Dolmen (Private) Limited

Karachi, May 23, 2023: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/ A-Two) to Dolmen (Private) Limited (DPL). Outlook on the assigned ratings is ‘Stable’. Medium to Long-Term Rating of ‘A-’ good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments. Liquidity factors and Company fundamentals are sound. Access to capital markets is good and risk factors are small.

Incorporated in 1986, Dolmen (Private) Limited (DPL) is engaged in the business of construction and selling/renting out of self-developed properties. Assigned ratings incorporate Company being a part of Dolmen Group - a well-reputed real estate developer present in residential, commercial and retail project segments for more than four decades. Dolmen Group’s strong experience and track record of delivering high-quality projects at prime locations positively impact ratings. Recently, the Group underwent corporate restructuring, resulting in an enhanced asset portfolio, including Grove Residency, units of Dolmen City REIT (DCR), exposure in DHA Dolmen Lahore (Private) Limited (DDL), Sky Towers (Tower A & Tower B), Executive Tower, Dolmen Mall Tariq Road, and Dolmen Mall Hyderi. The Company earns rental income from rented properties and dividend income from REIT units.

Assigned ratings incorporate the business risk profile of the Company supported by diversified & multi-national tenant profile, above 90% occupancy levels and stable dividend and rental stream. However, heavy capital commitments, largely funded through debt for DDL project are expected to keep Company’s gearing levels elevated while debt financing in the high interest rate environment is expected to keep profitability indicators subdued over the next two years. Ratings take comfort from projected cash flows from sale of Grove residency and proceeds from planned IPO of DDL REIT. However, ratings remain underpinned on achievement and execution of projected plans to support profitability and liquidity profile of the Company. In addition, ratings also take into account available land bank associated with the Company, which may be leveraged for cash flow support. As per management, capitalization profile, going forward, is expected to improve through early debt retirement and profit retention. Materialization of the same will be critical for ratings.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Corporates (May 2023)

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .