Press Release

VIS Assigns Management Quality Rating (RMC) of ‘AM4+’ to Shields REIT Management Company Limited

Karachi, November 01, 2023: VIS Credit Rating Company Limited has assigned the initial Management Quality Rating (RMC) of ‘AM4+ (RMC)’ (AM-Four Plus (REIT Management Company)) to Shields REIT Management Company Limited (SRMC), which indicates adequate management characteristics. Outlook on the assigned rating is Stable.

Established in July 2022 and receiving its license from SECP in April 2023, SRMC operates under the umbrella of Shields (Pvt) Ltd (SPL). The SPL, a key affiliate of the Abdullah Dadabhoy Group, holds a significant land portfolio in Karachi. The Group is gearing up to launch two large-scale housing projects and introduce REIT funds through SRMC. The ownership of SPL is concentrated in the hands of four members of the Dadabhoy family. Management has indicated that SPL intends to consolidate its real estate holdings, as well as those of affiliated group entities, into a REIT structure.

The assigned rating reflects the sound profile and extensive experience of the sponsor group in the real estate sector, complemented by its financial backing. SRMC, as a newly established entity, currently does not manage any REIT funds and thus, lacks an established performance history or track record. The corporate governance framework is being effectively implemented, and IT infrastructure aligns with the scale of operations. SRMC is in the process of formulating a formal Risk Management Policy, and Management assures this will be implemented soon. Research responsibilities have been handed over to a renowned third-party service provider. VIS will continue to monitor the performance trajectory as SRMC progresses in its organizational structure, investment approach, and expertise in managing REIT funds.

For further information on this rating announcement, please contact Mr. Amin Hamdani (Ext: 217) or the undersigned (Ext. 201) at 021-35311861-70 or email at info@vis.com.pk.





Javed Callea
Advisor

Applicable Rating Criteria:

REIT Management Company (October 2023)
https://docs.vis.com.pk/docs/REITManagement-2023.pdf

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

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