Real Estate Development Project
Presented by Grant Thornton Anjum Rahman (GTAR)
INDEX
• Real Estate Development project
• SECP requirements for incorporation of company
• Proposed Names
• Corporate requirements for Real Estate Projects
• Local Authority Requirements
• Existing regulations
• Proposed regulations
• Steps in Development Scheme
• Our Strategic Partners
Real Estate Project
Real Estate in Pakistan is one of the growing sector contributing to the economy of
Pakistan. According to the recent stats, approximately $5.2 billion is spent on real-
estate construction per year.
Demand for residential properties in Pakistan grew in 2010, leading to increased interest
among real estate developers and investors. Since prices have exceeded 10 million, new
housing developments are often aimed at the upper middle class. To assist the real-estate
sector, the Government of Pakistan announced a reduction in interest rates on mortgage loans
in 2012.
A list of top real-estate developers in Pakistan are
Bahria Town
Defence Housing Society
Capital Development Authority
Habib Rafique (Pvt.) Limited
SECP requirements for Company Incorporation
Apply for availability of proposed name
Following are Proposed names:
-JK & S Global Builders and Developers (Private) Limited
-J & S Global Builders and Developers (Private) Limited
-JK & S Global Marketing (Private) Limited
-J & S Global Marketing (Private) Limited
After seeking approval from SECP following documents should be submitted
Memorandum and Article of association of company
Form-1: Declaration of applicant for compliance
Form-21: Notice of situation of registered office of company
Form-29: Particulars of first directors of company
Registration Fee
Corporate Requirements
Without having
Maintain a separate
approval of SECP the The company shall
escrow account
company cannot
• Announce the project • Maintain and • For deposit of
• Publicize or advertise preserve books of advances received
the project accounts in a from allottee(s)
• Accept advances or prescribed manner • Such escrow account
deposits against any • Books of accounts shall be used only for
apartment, plot or should comply with carrying out the
building Scheme regulations. project
• The approval is • No attachment be
granted by SECP imposed on such
after the scheme is account for the
sanctioned by City benefit of creditors
Development and except fro the
Municipal purpose of project
Department
Peshawar.
Local Authority Requirement for Sanctioning
of Scheme
An application should be submitted Application should be accompanied
to by
• City Development (CD) and • Scrutiny fee@500 per kanal
Municipal Department (MD) If the • Developers ownership/title
area falls within city district documents along with khasra plan
• Tehsil Municipal Administration If verified by district officer revenue
the area falls outside the district • NEC issued by competent authority
• For land in Kohat, the authority • Location and layout plan
granting approval is CD & MD • Topographic/site survey of area
Peshawar.
• Copy of CNIC of developer or its
authorized representative
• Detail of land proposed to be
acquired
• Statement of work to be executed
• Statement of period during which
the area shall be developed.
Local Authority Requirement for Sanctioning
of Scheme (Proposed)
Step 1: Preliminary
planning permission
Steps for seeking
permission from
Step 2: Plan submission
Peshawar Development
Authority
Step 3: Pre-requisites
for approved scheme
Continued
Step 1: Preliminary Planning Permission
• Certified copy/ copies of CNIC of developer
• Developer/applicants mailing address
• Latest utility bills of property mentioned in mailing address
• Certified copy of registration certificate
• Plan of proposed scheme signed by town planner
• Khasra plan or aks-e-shajarah certified from concerned Tehsildar
• Certified title documents certifying the ownership of land
• Registered agreement between developer and land owner in case the
land is not owned by developer
• NEC issued by Sub-registrar
• NOC of Environmental Protection Agency
• Proposed financial cost of scheme along with financial statement of
developer including
• Bank statements and
• Detail of self-owned assets
• Processing Fee.
Continued
Step 2: Plan Submission
• Within 6 months after preliminary planning
permission following should be submitted
• Topographic survey extended to a depth of
one thousand feet
• Layout plan, superimposed on Khasra plan,
with proposed division of scheme into
residential and commercial plots.
• Detail of development work along with
schedule of time signed by developer
• Pay order.
Continued
Step 3: Pre-requisites for sanctioning of scheme
• Transparency of approved layout plan indicating plots proposed
to be mortgaged
• Soft copy of approved layout plan geo-referenced with
coordinate system of survey of Pakistan plan
• Scheme approval fee
• Transfer deed for transferring the following areas to authority
• Area reserved for road, open space, park, graveyard, solid
waste management
• One percent of scheme area for public buildings, excluding
area of mosque
• Submit in the name of authority
• Mortgage deed,20% saleable area of housing scheme to
authority as security
• Performance bond consisting of performance agreement and
bank guarantee.
Steps in Development of Scheme- All steps at a glance
Inventory Distribution
Market Research Plan & Commercial Master Plan
Strategy Formulation
Marketing Plan &
Feasibility Study Capital Raising
Sales Strategy
Market Research – Determining Potential
Analyze the market of the project to cater the
right demand.
End-to-end understanding of the success for
similar projects
Especial considering on demographics, socio-
economic parameters and access to resources.
Inventory Distribution Plan & Commercial
Strategy Formulation – Study
To finalize the inventory distribution plan
Consideration to saleable inventory
Compliance with relevant regulations and
Commercial strategy devised in line with findings of
market research.
Master Plan – Direction
Theme for the whole project
Project design
Development plan
Feasibility Study - Informed Decision-making
Commercial, Technical, Regulatory &
Financial aspect of the project
Financial models
Business and financial plan
Capital Raising
Injection of equity from strategic or
financial partners either local or
international
Determining optimum debt level of
the company and negotiating with
multiple banks for project finance.
Marketing Plan & Sales Strategy
In-depth plan of the advertising
Roadshows locally and internationally
Study of complete distribution channel on local and
international level.
If needed, engage banks to develop mortgage plans for
the end-consumers to facilitate the sales.
Our Strategic Partners
For like projects GT has
Sales and Marketing
Advisor:
partnered with
Urban Consultant
Legal Advisor:
Mohsin Tayebaly & Co.
Construction Contractor:
Habib Rafiq (Pvt.)Ltd
