Press Release

VIS Assigns Initial RMC Management Quality Rating to Sinolink REIT Management Company Limited

Karachi, March 24, 2025: VIS Credit Rating Company Limited (VIS) has assigned initial Management Quality Rating (MQR) to Sinolink REIT Management Company Limited (‘SRMCL’ or the ‘RMC’) of ‘AM3 (RMC)’ (AM Three (REIT Management Company). The MQR of ‘AM3 (RMC)’ indicates that the asset manager exhibits good management characteristics. Outlook on the assigned rating is ‘Stable.’
Sinolink REIT Management Company Limited was incorporated in Pakistan on December 10, 2021 as an unlisted public company. The RMC received a three-year license from the Securities & Exchange Commission of Pakistan (SECP) on February 7, 2022. The license, allows the RMC to launch Real Estate Investment Trusts (REITs) under the REIT Regulations, 2022. The registered office of the RMC is located in Karachi. The principal activities of the RMC include forming, launching, and managing REITs.
The RMC is sponsored by Mr. Asad Ahmed, who leads Image Pakistan Limited, a publicly listed fashion retail company as the CEO. This majority owned family business has been involved in the manufacturing of unstitched and ready-to-wear value-added embroidered fabric, operating under women’s apparel brand “Image.” For the year ended June 30, 2024, Image Pakistan recorded a turnover of Rs 2.9 bn, and net profit of Rs 285 mn. Asset and equity base of the Company stood at Rs. 4.8 bn and Rs. 3.5 bn respectively.
The assigned rating reflects RMC’s early-stage development, supported by an adequate governance framework, internal controls, and investment processes. Centralized leadership facilitates streamlined decision-making; however, independent representation remains limited. The internal control framework is well-structured to ensure risk mitigation and regulatory compliance, albeit its effectiveness in addressing risks related to related-party transactions and operational independence remains a key consideration. The investment process defines decision-making protocols, approval mechanisms, placement limits, and risk mitigation measures. Third party engagements reflect mid-tier players, albeit management plans to further enhance selection process to optimize project execution and quality remains important.
SRMCL registered its first REIT, the Image REIT Scheme, with the SECP on March 7, 2022. This perpetual, closed-end, Shariah-compliant hybrid REIT has a total size of Rs. 1.8 bn. It comprises both rental and development components, with the commercial rental segment fully leased to related parties, ensuring stable rental income, while the residential and retail mix development portion is underway with an expected completion timeline of two years. The REIT fund is set to be listed within the year, expanding its size to Rs. 2.8 bn. Proceeds from the IPO will be directed toward completing the development component.
SRMCL financial risk profile reflects a debt-free capital structure. To date, no revenue has been recognized by the RMC, as earnings have been waived for group tax efficiencies. Instead, income is generated through a financing arrangement with a related entity. Rating remains underpinned on realization and augmentation of management fees for long term sustainability as well as execution of management’s plan to further strengthen governance and internal control framework. Adoption of sustainability measures for project design and execution will also remain important.
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

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