Real Estate Investment Trust (REIT)

Key Players in a REIT

REIT Management Company (RMC)

A REIT Management Company abbreviated as RMC is an AMC listed company or Trust, licensed by the commission as a Non-banking financial company (NBFC) to launch REIT Scheme. The RMC is licensed under the NBFC Rules, 2003 and is obligated to abide by the provisions of the Companies ordinance, 1984, NBFC Rules, 2003 and the REIT Regulations, 2008. It is important to understand that only a REITs manager, registered with SECP, can offer an authorized investment in real estate.

Among the responsibilities include:

  • Ensuring that the prospectus and other legal documents are properly filed, compiled, and distributed as per requirement of regulations 
  • Ensuring reporting fundamentals are properly met
  • Making sure REITs regulations are in accordance with the rules specified or outlined by SECP 


Pakistani nationals over the age of 18 years having National Tax number or holding a Computerized National Identity Card are eligible to become participants to a REIT fund.


A trustee in the case of Real estate investment trust can be a bank or a financial institution appointed with the approval of the SECP responsible for offering investment in mortgages and properties. Its responsibilities include:

  • Collection of the contributions as required by the terms of the trust.
  • Ensure that the economic and financial aspects of REIT assets are properly managed in the sole interests of the unit holders
  • Ensure the overall processing complies with all applicable laws, rules, and regulations, including the terms of the trust documents
  • Formulating strategies which could act in the best interest of the beneficiaries.

All the contributions, investments, returns on investments and other incomes earned by the RMC are held by the trustee on behalf of the participants.


A custodian could be a person or financial institution generally acting as a caretaker or watchdog, who watches over RMC’s unsafe investments. The custodian watches over REIT assets and ensures that the REIT Scheme is managed according to the guidelines stipulated in the trust deed to minimize the risk of mismanagement by the RMC. The involvement of the custodian lessens the risk of any malpractices that may be harmful for the interests of the unit holders and the general public at large.

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