KARACHI:VIS Credit Rating Company Limited has assigned initial rating of RFR2 (dr) to Globe Residency REIT.
REIT Fund Rating of RFR2 denotes that successful implementation of the REIT project is very likely. Risk factors impacting value of REIT assets are modest over the foreseeable future. Outlook on the assigned ratings is stable, said a news release on Tuesday.
GRR scheme having a size of Rs 2.8b (financing mix- 50% through equity units of the REIT and remaining through long-term loan) was launched in April’22. The scheme is launched as a Limited-life (period of five years), Closed-end, Rated, Privately Placed (planned to be listed in the ongoing year), Developmental REIT Scheme.
Purpose of the scheme is to acquire and construct ‘Globe Residency Apartments’ project comprising land parcels in Naya Nazimabad, Karachi from Javedan Corporation Limited and generate return for unit holders.