Meezan Bank Limited (MBL) and Arif Habib Group (AHG) signed an agreement intending to jointly develop and sell apartment towers at Naya Nazimabad in Karachi.
The partnership would enable users to opt for the Shariah-compliant home financing services offered by MBL, the joint statement said.
MBL has signed a Musharakah Agreement with Globe Residency REIT(GRR) with the intention to develop 3 apartment towers comprising 408 apartments with 2 bedrooms.
“Construction of the towers is already underway, and their grey structure is expected to be ready in eighteen months,” the joint statement said.
Arif Habib Dolmen REIT Management Limited is managing the GRR while Arif Habib Real Estate Development Company is the development advisor.
Altogether, GRR is developing nine towers in Karachi, which were initiated in November 2021 and would be prepared for possession within 3 years. The general public has already booked 642 apartments out of 836 offered in November 2021.
As per the statement released by MBL, the bank is participating for a 50 percent share in 3 towers out of 9 towers being built by GRR through the Musharakha arrangement. “All regulatory approvals from the SECP and SBCA are in place. Central Depository Company of Pakistan Limited (CDC) is the trustee and A.F. Ferguson (PWC) is the auditors of GRR.”
Moreover, the contract for the towers in Karachi was signed by Arif ul Islam, deputy CEO of MBL, Samad Habib, CEO of Javedan Corporation Limited (JCL), Badiuddin Akber, CEO of CDC, and Muhammad Ejaz, CEO of Arif Habib Dolmen REIT Management Limited.
The ceremony was also attended by Arif Habib, JCL chairman, and Muhammad Irfan Siddiqui, president, and CEO of Meezan Bank Limited.
During the ceremony, Irfan Siddiqui stated, “Meezan Bank strives to offer its qualified customers Shariah-compliant banking solutions and services. Many of our customers wish to own their homes and we are pleased to be able to provide them Islamic Mortgage mode of financing for Apartments at Naya Nazimabad that will offer a convenient, affordable, and Shariah-compliant way to obtain the home of their dreams.”
“It is hoped that many more such transactions will take place between banks and REITs to facilitate the general public,” Arif Habib commented.
Naya Nazimabad is an integrated housing plan in the city that is planned to house over 50,000 families upon its completion.