Meezan Bank and Arif Habib Group Enter into a Strategic Partnership for Apartment Development under Musharakah Mode
Karachi (Muhammad Yasir) Arif Habib Group (AHG), and Meezan Bank Limited (MBL) have entered into a strategic partnership to jointly develop and sell apartment towers at Naya Nazimabad. This collaboration will allow customers to opt for the Shariah Compliant Home financing services offered by MBL.
MBL has entered into a Musharakah Agreement with Globe Residency REIT(GRR), for development of 3 Apartment Towers consisting of 408 apartments of 2 Bedrooms. Construction of Towers is already underway, and their grey structure is expected to be ready in eighteen months.
GRR is being managed by Arif Habib Dolmen REIT Management Limited and Arif Habib Real Estate Development Company is the Development Advisor. In total GRR is constructing nine towers, which were launched in November 2021 and will be ready for possession within 3 years. 642 apartments have already been booked by general public out of 836 offered in November 2021. REIT units will also be listed on PSX, soon offering them to general public for investment.
Under the mortgage finance facility customers will be able to make payments over 20 years, similar to making monthly rental payments. The process is open and transparent, making real estate more accessible to middle class customers.
MBL is participating for 50% share in 3 Towers out of 9 towers being developed by GRR through the Musharakha Arrangement. Both MBL and GRR shall contribute 50% each for the cost of construction of these apartments. All regulatory approvals from SECP and SBCA are in place. Central Depository Company of Pakistan Limited (CDC) is the trustee and A.F. Ferguson (PWC) are Auditors of GRR.
The agreement was signed by Mr. Arif ul Islam, Deputy CEO, MBL, Mr. Badiuddin Akber, CEO, CDC, Mr. Samad Habib, CEO, Javedan Corporation Limited (JCL), and Mr. Muhammad Ejaz, CEO, Arif Habib Dolmen REIT Management Limited. Also present on the occasion were Mr. Arif Habib, Chairman, JCL and Mr. Muhammad Irfan Siddiqui, President and CEO, Meezan Bank Limited. MBL.
Mr. Muhammad Irfan Siddiqui, President and CEO, Meezan Bank speaking at the occasion said, “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 a home of their dreams.”
Mr. Arif Habib, Chairman, JCL commented, “Naya Nazimabad works relentlessly to offer quality lifestyle to its residents. This is a landmark real estate transaction opening the doors of housing development in Pakistan for the middle-class population through Mortgage Financing mode between an Islamic Bank and a REIT scheme. It is hoped that many more such transactions will take place between banks and REITs to facilitate the general public. We are pleased to partner with Meezan Bank to provide home financing product exclusively designed for Apartments at Naya Nazimabad. Making our housing project accessible to the wider community is a significant part of our vision and we believe Meezan Bank will be a key partner in helping us realise this goal.”
Naya Nazimabad is an integrated housing scheme, which focuses on healthy community living. It is the largest master-planned, gated residential development in Karachi and will house more than 50,000 families upon its completion. It has the provision for all essential amenities for today’s living, within walking distance for its residents. A project of Javedan Corporation Limited, Naya Nazimabad is a self-contained city, conceptualized and developed with the vision of providing a peaceful community atmosphere and a healthy lifestyle.