ORIX Properties Pakistan Limited
OPP (Orix Properties Pakistan Limited) is the latest addition to the Orix Group. The company has been set up as a joint venture between Orix Corporation Japan, Orix Leasing Pakistan and Gohar S Butt & Associates. The purpose of the Company is to build and manage small and medium sized real estate related businesses in Pakistan and the surrounding region. The Company was established in 2007 in Pakistan and has recently undertaken its first project of serviced apartments in Lahore.
The business strategy of the Company is to develop businesses that are real estate dependent such as serviced or hotel apartments, medical complexes, warehouses, hotels and similar other businesses where the bulk of the seed capital is allocated for real estate. OPP proposes to develop such businesses and manage them as a portfolio as against developing real estate merely for the purpose of sale. OPP’s profits therefore over the years as the business matures will come from a combination of sources including but not limited to: rentals, business operating income and capital gains from sale of assets or businesses.
The strategy adopted by the Company is to start with small and mid sized real estate projects and move up gradually to include in the portfolio larger and long term high return ventures.
Immediate Investment Targets
To start with it is proposed that the Company invests in a combination of different types of projects albeit all of them in the small and mid-sized category as per a predefined investment strategy. These projects may include:
- Customized retailing outlets – small sized retail outlets for corporates including banks, telecom and other retailers seeking to expand their distribution networks without tying up huge financial resources in doing so.
- Small apartment buildings – low rise buildings of under 60 feet, 3 to five floors, less than 60 apartments or under a 100,000 square feet of total covered area. These could either be developed for sale or offered as serviced apartments for short term leases of a year or shorter periods.
- Customized office blocks – small sized buildings over land areas of less than 500 square yards, under 60 feet high tailored to meet the specific needs of businesses seeking to lease serviced office space.
- Mid range motels / hotels – small sized boarding and lodging, bed and breakfast facilities with under 100 rooms, without swimming pools, gyms, restaurants, banqueting or conference facilities in the main commercial centers of large cities. Targeting individual business travelers and tourists seeking affordable and hygienic boarding facilities.
- Small housing compounds – less than 50 houses developed over a piece of land acquired within a large community e.g. DHA (Defense Housing Authority Lahore/Karachi or Islamabad), however with a unique identity characterized by a style peculiar to the developments of the Compa
Future Investment Targets
Investment focus will be redirected to include larger and long term higher return projects after the Company has gained sufficient experience and developed alliances and support paraphernalia, along with a sizeable portfolio of sustainable cash generating real estate. This could take a period of up to three to five years from inception.
Illustrative opportunities in the future may include and will not be limited to Shopping malls, apartment buildings, office blocks, housing colonies, entertainment and banqueting facilities etc. Other areas of activity that will be of keen interest in the future may include gas stations, warehouses, banquet halls etc.