JCR-VIS Assigns Management Quality Rating of ‘AM2- (RMC)’ (AM-Two Minus (RMC)) to Arif Habib Dolmen REIT Management Limited

Karachi, June 08, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited has assigned Management Quality Rating of ‘AM2- (RMC)’ (AM-Two Minus (RMC)) to Arif Habib Dolmen REIT Management Limited (AHDRML). Outlook on the assigned rating is Stable. AHDRML is one of the first REIT management companies to be granted permission for operations in Pakistan. REIT regulations have only recently been finalized by the Securities and Exchange Commission of Pakistan.

AHDRML’s rating reflects the company’s research processes, the experience of key executives and profile of sponsors. The company has a thorough research process in place with sufficient breadth and scope, to vet property investments for inclusion in REIT schemes in addition to periodic update of data pertaining to different property segments for building an internal database on general market dynamics. Given the absence of formal data sources for the real estate market in Pakistan, the RMC gathers data from a combination of market players and in-formal sources.

The executive management demonstrates an understanding of the RMC’s role in management of property and local property market dynamics, with most of them having varying level of experience specific to the real estate sector. Some personnel have been assigned multiple responsibilities currently; these may need to be segregated over time as the operations of the company evolve. The entire senior management team is involved in the decision making process while given the long term commitment involved in such investments, final approval involves input from the Board of Directors.

The investment process involves thorough due diligence and deliberations; the same needs to be minutized. Investment policy covering defined criteria for selecting and evaluating property investments for inclusion in REIT schemes, as practiced, also needs to be documented. The current investment policy only caters to investment of surplus funds in various debt instruments. Risk management processes may also need to be formalized as the institution prepares for the launch of its first fund. These areas are planned to be addressed with the growth of the AMC.

Performance track record of funds will be established over time; the group’s experience provides comfort to JCR-VIS’ assessment of the management quality rating. The company benefits from its affiliation and corresponding operational and financial support, from the Arif Habib and Dolmen Groups. Board features experienced professionals with substantial real estate experience in addition to financial services.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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