Image REIT set to make history with hybrid Rs920m IPO

The Image REIT IPO comprises 92,015,467 units at a floor price of Rs10 per unit, representing 33.36% of the post-IPO paid-up units.

The offering will be conducted entirely through a 100% book-building method, with a price band ranging from Rs 10 to Rs 14 per unit, with investor registration beginning next week.

Innovative Hybrid Structure

What sets Image REIT apart is its unique hybrid structure, combining both rental and developmental components - a first of its kind in Pakistan's REIT market.

The rental component consists of an operational commercial property located at Plot No. A/33, Central Commercial Area, Block 7/8, Main Shahrah-e-Faisal, Karachi, which has been generating revenue since July 2023.

The developmental component, situated at Plot No. 19 DMCHS, Block 7/8, Tipu Sultan Road, Karachi, is currently under construction with completion expected by 2028.

The project will feature 22 residential apartments across 11 floors, retail spaces on ground and mezzanine levels, and two basement parking levels.

Investment Timeline and Process

The IPO process will unfold over several phases:

• Investor Registration: September 8-11, 2025 (9:00 AM to 3:00 PM)
• Bidding Period: September 10-11, 2025 (9:00 AM to 5:00 PM)
• Public Subscription: September 17-18, 2025 (9:00 AM to 5:00 PM)

Under the book building mechanism, successful bidders will receive 75% of the issue size (69.01 million units), while the remaining 25% (23.00 million units) will be offered to retail investors through the general public portion.

Strong Foundation and Governance

Image REIT has received solid ratings from VIS Credit Rating Company Limited, with the REIT scheme rated RFR3 (hr) and the management company rated AM3 (RMC).

The Central Depository Company of Pakistan Limited serves as trustee, ensuring robust governance structures.

The REIT scheme was registered with the Securities and Exchange Commission of Pakistan (SECP) on March 7, 2023, following initial approval in June 2022.

With a target fund size of Rs2.76bn and no debt financing, the scheme presents a compelling investment opportunity in Pakistan's growing real estate sector.

Topline Securities Limited and Growth Securities (Private) Limited are serving as joint lead managers and book runners for the issue, with comprehensive advisory support from established firms including R.H. Memon Consulting Engineers and Sadruddin Associates.

The proceeds from this IPO will primarily fund the completion of the developmental component, positioning Image REIT as a significant player in Pakistan's evolving REIT landscape and offering investors exposure to both immediate rental income and long-term capital appreciation potential.