Naya Nazimabad, a Housing Project of Javedan Corporation Limited (JCL), and Meezan Bank have entered into a strategic partnership to jointly develop and sell apartment towers at Naya Nazimabad. This collaboration will allow customers to opt for Shariah-compliant home financing services offered by Meezan Bank.
The partnership with Globe Residency REIT, Naya Nazimabad falls under the Musharakah mode of financing for development of three apartment towers consisting of 408 apartments of two bedrooms. Meezan Bank has acquired 50 percent Musharakah of these three towers out of the nine towers being developed and both paties shall contribute equally to the cost of construction.
The agreement was signed by Mr. Samad Habib – Director, Arif Habib Dolmen REIT Management and Mr. Ariful Islam – Deputy CEO, Meezan Bank. Also present at the occasion were Mr. Arif Habib – Chairman, Javedan Corporation Limited, Mr. Irfan Siddiqui – President and CEO, Meezan Bank, Mr. Badiuddin Akber – CEO, CDC, Mr. Muhammad Ejaz – Arif Habib Dolmen REIT Management Limited.
Construction of towers is already underway, and their grey structure is expected to be ready in eighteen months. Construction of this project will be completed in three years but it will be offered to the general public once the grey structure has been developed.
Globe Residency REIT is being managed by Arif Habib Dolmen REIT Management Company with Arif Habib Real Estate Services as the Project Manager. All nine towers which were launched in November, 2021 will be ready for possession within three years. REIT’s ownership units will also be listed on PSX soon, offering them to general public. 642 apartments have already been booked by the general public out of the total 836 units offered in November, last year.
Under this agreement, apartments shall be owned by the customers and they will be able to make payments that are spread up to 20 years, similar to making monthly rental payments. The process is open and transparent, making real estate more accessible to middle class customers. It is worth mentioning that all regulatory approvals from SECP and SBCA are in place. Central Depository Company (CDC) Pakistan is the trustee and A.F. Ferguson (PWC) are auditors of GRR.
Mr. Irfan Siddiqui – President and CEO, Meezan Bank, while speaking at the occasion said, “Meezan Bank strives to offer its customers with 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 with the Islamic mode of financing for Naya Nazimabad Apartments that will offer a convenient, affordable and Shariah-compliant way to obtain the home of their dreams.”
Mr. Arif Habib – Chairman, JCL commented, “Naya Nazimabad works relentlessly to offer quality lifestyle to its customers at Naya Nazimabad. This is a landmark real estate transaction in Pakistan opening the doors of housing development in Pakistan for the middle-class population through Home Financing mode between an Islamic Bank and a REIT. It is hoped 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 Naya Nazimabad Apartments. 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 project in Karachi and will house more than 50,000 families at its completion. It has the provision for all necessary 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.