Citi Pharma Limited has approved a Scheme of Arrangement and Demerger to facilitate the creation of a Real Estate Investment Trust (REIT) structure, marking a strategic step towards unlocking value from its real estate assets. The proposal was approved by the company’s Board of Directors and disclosed through a notification to the Pakistan Stock Exchange (PSX).
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Under the proposed scheme, two immovable properties owned by Citi Pharma will be transferred to Citi Core Holdings (Private) Limited, a wholly owned special purpose vehicle established specifically for the planned REIT structure. The transaction is intended to separate the company’s real estate assets from its pharmaceutical operations while creating a transparent framework for future investment and asset management.
The implementation of the demerger remains subject to shareholder approval, sanction by the Lahore High Court, and all applicable regulatory approvals. Once completed, the REIT structure is expected to enhance operational efficiency, improve asset utilisation and create additional value for shareholders through a more focused corporate structure.
Citi Pharma has continued to pursue expansion initiatives across both its pharmaceutical manufacturing business and real estate investments. The proposed restructuring aligns with the company’s broader strategy of strengthening corporate governance, improving capital allocation and supporting long-term growth.
Market analysts believe REIT structures provide companies with an effective mechanism for monetising high-value real estate assets while offering investors greater transparency and diversified investment opportunities. The move also reflects the increasing adoption of sophisticated financial structures within Pakistan’s corporate sector.
The proposed demerger positions Citi Pharma to enhance shareholder value while continuing to expand its core pharmaceutical business alongside a separately managed real estate investment platform.
