Could plant-based fur be as good as the real deal?
CategoriesSustainable News

Could plant-based fur be as good as the real deal?

Could plant-based fur be as good as the real deal?

Spotted: While statistics illustrate that a majority of US consumers still consider it morally acceptable to wear fur, there has been a notable shift away from its use in the fashion industry. Prada, Phillip Lim, Macy’s, Chanel, Burberry, and Net-a-Porter Group have all removed real animal fur from production and sales floors.

Today, vegan alternatives are available, but many fur substitutes are made from petroleum-based synthetic fibres, which are unsustainable, even if they are animal-free. Now, New York and Paris-based bio-materials startup, BioFluff has pioneered a luxury collection based around its plant-based alternative to fur.

The collection, dubbed Savian, featured artificial fur crafted from natural plant fibres using proprietary methods. The line includes fur, shearling, and fleece-like fabrics that are vegan, GMO-free, and incorporate natural- and mineral-based dyes. The materials both look and feel natural.

Savian is the first materials brand created by BioFluff, which recently secured $2.5 million (around €2.3 million) in a seed round led by Astanor Ventures, a leading name in agrifood tech impact investing. This follows a 2022 pre-seed round that raised $500,000 (around €457,000). The company aims to expand into developing plant-based interior designs, packaging, and even toys.

Plant-based materials are slowly replacing petroleum-based products in many areas. Recent innovations spotted by Springwise include clothing made from seaweed and all-natural sneakers.

Written By: Lisa Magloff

Reference

How can AI help real estate professionals decarbonise?
CategoriesSustainable News

How can AI help real estate professionals decarbonise?

How can AI help real estate professionals decarbonise?

Spotted: The UN Environment Programme reports that “Nearly 40 per cent of global carbon dioxide emissions come from the real estate sector. Of these emissions, approximately 70 per cent are produced by building operations, while the remaining 30 per cent comes from construction.” While the climate impact of buildings is clear, for managers of large portfolios of commercial real estate, it can be difficult to build a complete and accurate picture of the sustainability of every building. 

Enter Cambio, a commercial real estate decarbonisation platform built by and for real estate professionals. The startup brings together climate and data scientists and retrofit and regulatory experts to provide portfolio and building managers with deep insight into building and equipment performance. 

Armed with an understanding of the sustainability changes that could make the quickest and largest reductions to a building’s emissions, portfolio managers can ensure compliance with regulations and drive progress towards net-zero goals. Cambio’s system integrates directly with every metre on a property, providing a livestream of energy use and emissions intensity.  

Additionally, the system works seamlessly with utility providers’ APIs, making it possible for portfolios of mixed ownership to monitor all properties in the same way. The platform uses artificial intelligence to analyse potential returns on investment for a range of retrofitting options, before ranking the properties based on the level of opportunity for carbon reductions.

As well as flagging compliance with regulatory policies, Cambio also automates reporting. This makes it possible for owners and managers of large portfolios to see total emissions at-a-glance, as well as those for individual buildings. They can then track interventions over time to evaluate their efficacy.  

The complexity of real estate decarbonisation management is reflected in the numbers of AI-powered solutions being created by innovators. Springwise’s archive includes projects that use blockchain to track buildings’ carbon emissions and AI recommended carbon transition plans.  

Written By: Keely Khoury

  

Reference

Heating commercial real estate with geothermal power
CategoriesSustainable News

Heating commercial real estate with geothermal power

Heating commercial real estate with geothermal power

Spotted: Geothermal energy is one of the most energy-efficient methods for providing HVAC (heating, ventilation, and air conditioning) for businesses and communities alike. But the problem that has traditionally faced geothermal power is the high upfront cost of establishing boreholes to tap into this energy in the ground, especially in contrast to other readily available energy infrastructure. And for tall commercial properties or apartment blocks, traditional geothermal systems have also not been able to provide enough energy to heat or power the entire building. This is where US startup Bedrock Energy comes in. 

The company has developed new autonomous drilling and subsurface modelling technology that allows borefield construction to be around three times quicker and cheaper. Crucially, unlike existing boreholes, which are often drilled 300 to 800 feet below the Earth’s surface, Bedrock drills 2,000 feet underground where the temperatures are much hotter. 

Because of this, the company reduces the number of boreholes required for a project – from as much as 28 down to just eight – meaning tall commercial buildings with limited land space can still make use of this abundant energy source for their heating and cooling systems.  

Using its advanced algorithms, Bedrock can accurately predict the energy transfer to buildings from the geothermal site. The company then specially designs a project’s geothermal loop field to optimise borehole location for the best long-term energy returns.  

Bedrock is ready to start deploying to commercial projects soon and is currently working on a pilot project. The company recently raised $8.5 million (around €7.9 million) in seed funding, which will be used to help accelerate the manufacturing and deployment of its technology. 

Many more innovators are recognising the potential of geothermal energy, and Springwise has also spotted one company that’s using Kenya’s geothermal resources to power direct air capture as well as a system that makes geothermal less water-intensive.

Written By: Archie Cox

Reference

Realty Sage is Revolutionizing the Green Real Estate Market
CategoriesSustainable News Zero Energy Homes

Realty Sage is Revolutionizing the Green Real Estate Market

Realty Sage is Revolutionizing the Green Real Estate Market

Zillow created a powerful and historical shift in real estate by opening up the traditional real estate industry to the public, offering home listing information directly to consumers. A full 99% of home buyers between the ages of 23 and 56 use the internet to find their homes. This remarkable effort has unmasked previously hidden information, so that home buyers are now more educated and confident in their home buying and selling. Consumer trust has shifted from real estate agents to publicly accessible data, helping buyers and sellers better understand market trends. Specializing in the green real estate market, Realty Sage shines that light on the features and real benefits of eco-friendly homes.

While Zillow helped bring the real estate industry into the light, sustainable homes are demanding more attention. Realtors see value in promoting green home features to the public, but most well-known national real estate websites do not offer the ability to search for sustainable homes in a comprehensive way. Even though sustainable homes are almost always a better investment compared to traditionally built and equipped homes, tracking and understanding their eco features has been difficult. The data about sustainable homes is, for the most part, unavailable, inaccurate, or difficult to trust. And realtors with real green home expertise can be difficult to find.

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Bringing the Sustainable Homes Market to the Fore

Realty Sage has stepped in to fill that void in the market with a green real estate website that focuses primarily on sustainable homes. Structured differently than Zillow or Trulia, Realty Sage listings deliver innovative marketing and education that specifically focus on sustainability and new building technologies. It gives homebuyers, sellers, and real estate professionals an online shopping experience that helps them better understand the hidden value of sustainable homes.

Realty Sage listings provide detailed and educational information about eco and energy-efficient homes for sale, including renewable energy, advanced building techniques, energy rating scores, and numerous third-party certifications like Energy Star, Pearl, Passive House, and the Department of Energy’s Zero Energy Ready Home. Listings feature verified information on cost savings and environmental impact, in addition to all the standard home listing information.

More Trust in Eco Claims for Home Listings

Energy Sage works to verify the eco claims about each home listed on the site, including energy efficiency scores and third-party certifications. The database’s Sage Score simplifies verified information on the sustainable qualities of listed homes. The score considers hundreds of features in a home and its community: renewable energy and energy efficiency; water efficiency; advanced smart home systems and appliances; interior finishes; quality construction; community and outdoor amenities; and utility costs. In conjunction, the Realty Sage Livability Categories evaluate the potential benefits of certain property features, including potential cost savings, comfort, environmental impact, and health benefits.

This helps green real estate agents and sellers more accurately market homes for a better return on the homeowners’ eco investments. And verification boosts buyers confidence in the seller’s claims. Meanwhile, industry professionals can track and understand the performance of real estate listings showcasing detailed eco features and certifications.

Connecting with Green Real Estate Agents

The right professionals can make it easier to evaluate your high-performance home at the time of sale, or when financing a new home or undertaking a sustainable renovation. Green-savvy real estate agents and other eco professionals serve every state. And Realty Sage Pros helps homeowners identify the ideal agent. To minimize spam, customers complete a short questionnaire of their real estate needs, and Realty Sage Pros will send inquiries to just three to local, knowledgeable professionals.

Realty Sage supports a culture where home buying is not just about price, location, and features. Selecting a home that delivers a positive homeowner experience includes ongoing cost savings, comfort, health, quiet, durability, functional design, future-proofing, and environmental impacts. Buying a home is one of the most important and most expensive purchases a person may ever make, so having access to the hidden attributes of a home is critical.

Realty Sage.com provides:

  1. A platform for home buyers to search thousands of sustainable homes for sale across the country.
  2. Searchability by type: energy and water efficiency, third-party certifications, healthy communities, smart homes, and much more
  3. Free green real estate listings for sellers and real estate agents with advanced marketing opportunities
  4. Hundreds of more-detailed property fields than many local multiple listing services (MLS)
  5. Prominent promotion of sustainable features and green certifications
  6. Information on long-term value, cost savings, and environmental impact of sustainable homes
  7. Resources for buyer’s financing
  8. In-depth information on sustainability and the benefits of eco features
  9. Easy connection to local real estate professionals who are knowledgeable and experienced with sustainable homes

The next time you venture into the housing market, visit Realty Sage and then let us know how it helped you. Or connect with a local, green real estate agent via RealtySagePros for advice and guidance. And if you’re a realtor with a sustainable, high-benefit home ready to sell, be sure to post your listing for free.

The author:

Kari Klaus is the Founder and CEO of Realty Sage, a dynamic real estate platform solving one of the largest obstacles to consumer adoption of high performance and sustainably built homes: education and return on investment. Realty Sage applies intelligence to big data, simplifying eco-home features with the Sage Score and benefits with the Realty Sage Livability Categories. An award-winning tech startup, Realty Sage has been featured in The Washington Post, Chicago Tribune, Silicon Valley Startups Radio, Elemental.green, and more.

 

Reference

A platform overcoming the ESG data gap in real estate
CategoriesSustainable News

A platform overcoming the ESG data gap in real estate

A platform overcoming the ESG data gap in real estate

Spotted: Real estate is responsible for around 40 per cent of total global emissions, with around 28 per cent of that total generated by existing buildings. But the question of how to ensure that any modernisation is sustainable and meets environmental, social, and governance (ESG) requirements is not an easy one to answer. This is what startup Predium aims to tackle, with its ESG software platform for the real estate industry.

The Munich-based company has developed a platform that provides building owners and managers with a comprehensive overview of the ESG status of the property. The platform collects information on energy consumption, CO2 emissions, and other building information from a wide variety of sources. Then, the system performs a precise profitability check of various modernisation measures.

The platform is designed to allow users to prioritise the measures that best meet ESG benchmarks and cost savings, while allowing them to track implementation. Predium also supports reporting of any measure taken, and their effects, to investors, boards, and regulators.

Founded in 2021, Predium raised €1.6 million last year in a seed funding round, and has been growing fast since. 

Improving the efficiency of the built environment is crucial to reaching net zero. Luckily, there are no shortage of ideas on how to achieve this. Take a look at our archive for some that Springwise has spotted, including environmentally friendly concrete and wood-based, fossil fuel-free insulation.

Written By: Lisa Magloff

Reference

Zhengzhou Grand Theater by The Architectural Design and Research Institute of HIT
CategoriesArchitecture

Putting On a Show: 7 Remarkable Venues With Real Wow-Factor

Zhengzhou Grand Theater by The Architectural Design and Research Institute of HIT

Architizer’s 11th Annual A+Awards is open for entries! With a Final Entry Deadline of January 27th, 2023, the clock is ticking — get started on your submission today.

Venues are the vessels of performance, and architecture is perhaps the most overlooked player on the stage. The geometries of events structures must perfect a complex dance that juggles elements such as acoustics, scale, sightlines, illumination and atmosphere. All the world may be a stage, to quote Shakespeare’s enduring words, but it’s the task of the architect to shape the stage into its own palpable world.

Performance spaces, whether theatrical, cultural or athletic, have a storied history that reaches back millennia. Yet, these typologies continue to be revised and rewritten in exciting new ways, as these outstanding winning projects from the 10th Annual A+Awards show. From concert halls and theaters to stadiums, discover seven of the most innovative contemporary venues deserving of a standing ovation.


 Zhengzhou Grand Theater

By The Architectural Design and Research Institute of HIT, Zhengzhou, China

Popular Choice Winner, 10th Annual A+Awards, Hall / Theater

Zhengzhou Grand Theater by The Architectural Design and Research Institute of HITZhengzhou Grand Theater by The Architectural Design and Research Institute of HITEnvisaged as a boat traversing China’s Yellow River, this remarkable performing arts venue resembles a vast ship anchored amid the urban sprawl of Zhengzhou. A series of dramatic metal sails define the exterior; however, the structure’s imposing scale is softened by its receptiveness to the surrounding landscape. Angular glass openings create a rapport between the building and the street outside. After nightfall, the sails illuminate and the interior glows, beckoning passers-by into its theatrical world.

Inside, the complex is home to four large theaters with unique architectural identities. The spaces have been carefully designed to accommodate their differing acoustic needs while ensuring there’s no noise interference between the venues. Undulating balconies, curving forms and dynamic solid surface patterns shape an immersive visual and audio experience.


 Andermatt Concert Hall

By Studio Seilern Architects, Andermatt, Switzerland

Jury Winner, 10th Annual A+Awards, Hall / Theater

Andermatt Concert Hall by Studio Seilern ArchitectsAndermatt Concert Hall by Studio Seilern ArchitectsOriginally an underground convention hall, this concrete structure has been transformed into a contemporary concert hall in the picturesque Swiss Alps. The ceiling of the subterranean space was raised to amplify the venue’s acoustics and increase its capacity. From the origami-inspired timber cladding to the inclined balconies and suspended sound reflectors, the interior topography has been carefully orchestrated to create an enveloping space where sound rises and falls around the audience like a wave.

The redesign rejects the conventional notion of the concert hall as an insular, enclosed space. The glazed upper volume protrudes up into the rural landscape, allowing light to pour down into the venue and creating a mercurial backdrop for concerts that shifts with the seasons. Externally, the structure takes on the appearance of an art installation at first glance, the acoustic reflectors floating ethereally amid the mountain peaks. The result is an intriguing invitation to find out more…


Hayward Field

By SRG Partnership, INC, Eugene, Oregon

Popular Choice Winner, 10th Annual A+Awards, Stadium & Arena

Hayward Field by SRG Partnership, INCHayward Field by SRG Partnership, INCThe site of sporting venues since 1919, this state-of-the-art track and field stadium has a hallowed history. The newest iteration of this legacy was inspired by the energy of competing athletes. The asymmetric oval frame of the stadium dips and rises in height as though it’s in motion — a considered decision that increases the density of seats near the finishing line. Meanwhile, a canopy of wooden ribs covered in a translucent skin allows daylight to permeate the stands, shielding the heart of the stadium, the spectators, from the elements.

The athletes’ experiences are prioritized in the architectural fabric of the structure too. As well as a vast complex dedicated to training and recovery below the stands, every element of the stadium has been designed as a vehicle for practice, from the winding stairs at the entrance to the public concourses and ramps clad in track surfacing.


Montforthaus

By HASCHER JEHLE Architektur, Feldkirch, Austria

Jury Winner, 10th Annual A+Awards, Cultural & Expo Centers

Montforthaus by HASCHER JEHLE ArchitekturMontforthaus by HASCHER JEHLE ArchitekturThis experimental venue is situated in a medieval town in western Austria. It was designed as a fluid space, capable of hosting everything from conventions and balls, to theater, pop concerts and classical performances. While its architectural form is strikingly contemporary, the structure doesn’t stand in conflict with its historic surroundings. Instead, traditional regional materials have been reimagined in a modern lexicon, creating a continuity between old and new.

The complex comprises an array of multipurpose events spaces, each shapeshifting in their scale and functionality. The large concert hall features over 300 square meters of adjustable surfaces, including six movable acoustic sails across the ceiling for a customizable aural experience. Height limitations posed an initial challenge to the  design, which meant rethinking the theatrical rigging system. Instead, the classic fly tower was reimagined as interchangeable segments, an especially innovative configuration.


Quzhou Stadium

By MAD Architects, Quzhou, China

Jury Winner, 10th Annual A+Awards, Stadium & Arena

Quzhou Stadium by MAD ArchitectsQuzhou Stadium by MAD ArchitectsEmbedded within an urban park, this extraordinary sports complex in Quzhou was devised to blur into the rolling topography. Six hills, a lake and sunken gardens sit in harmony with the structure, which is nestled within a crater-like recess in the ground. The entrances to the stadium appear as apertures in the earth, oversized burrows of sorts. From a distance, the only tell-tale sign of the arena’s presence is the translucent halo of the roof, which seemingly floats above the landscape like a cloud.

Encircled by woodland, the park sits at a distance from the city, the organic terrain a counterpoint to the developed skyline. The project offers a rebuttal to the typology of the stadium as a display of power — one that often appears to dominate the landscape. Instead, the sporting spirit is sensitively imbued into a communal outdoor space, placing the training of elite athletes alongside the quotidian physical activities of city dwellers.


Intuit Dome

By Cloud Architects, Inglewood, California

Jury Winner, 10th Annual A+Awards, Unbuilt Sport & Recreation

Intuit Dome by Cloud ArchitectsIntuit Dome by Cloud ArchitectsCombining sports with sustainability, the ground-breaking basketball stadium of the LA Clippers is striving to become the world’s first carbon-neutral arena. Harnessing Southern California’s sunny climate, the stadium, which is currently under construction, will be enveloped by a gridshell crowned with a solar array. The building will run entirely off electricity derived from the sun, while its solar battery storage system will have enough capacity to power a basketball game or concert. Coupled with natural ventilation and initiatives to eradicate landfill waste and improve local air quality, the arena will have an overwhelmingly positive impact on the region.

Embracing environmental responsibility hasn’t compromised the experience of fans either. The pioneering design will feature a bowl-style seating arrangement that ensures each seat has an unimpeded sightline, as well as integrated at-seat refreshment services. Meanwhile, the architects conceived the arena’s interior to optimize the Clippers’ home-court advantage — 51 rows of seats will flank one of the baskets, dubbed the ‘Wall of Sound’.


Winter Park Library & Events Center

By Adjaye Associates, Winter Park, Florida

Jury Winner, 10th Annual A+Awards, Libraries

Winter Park Library & Events Center by Adjaye AssociatesWinter Park Library & Events Center by Adjaye AssociatesThis community development in Florida was designed as a cultural micro-village amongst the tropical terrain. Encompassing the northwest corner of Martin Luther King, Jr. Park, the complex comprises three pavilions that house a two-story library, an events center and a welcome portico, as well as a number of outdoor socializing areas. The scheme’s radical design articulates its core principles of empowerment, education and unity with the natural world.

Just as the indoor buildings flow out seamlessly to the exterior meeting spaces, the divisions between the designated interior zones are porous. The library and events center feature flexible floor plans that promote the cross-pollination of ideas. Rather than a traditional, closed design, the tiered auditorium is open at the back to the rest of the events complex, encouraging engagement and participation. Here, the venue is not a singular confined space but a permeable zone of collaboration.

Architizer’s 11th Annual A+Awards is open for entries! With a Final Entry Deadline of January 27th, 2023, the clock is ticking — get started on your submission today.

Reference

AI quickly creates decarbonisation plans for real estate portfolios
CategoriesSustainable News

AI quickly creates decarbonisation plans for real estate portfolios

AI quickly creates decarbonisation plans for real estate portfolios

Spotted: Reducing emissions is a top priority in every industry, and doing so as fast as possible is essential. Now, innovators everywhere are grappling with how to turn great ideas into working concepts, and then industrial-scale solutions. Canadian property technology experts at Audette have built an artificial intelligence (AI) platform that does in a few hours what it would ordinarily take humans years to do – analyse a full portfolio of commercial real estate for decarbonisation opportunities and build a plan to retrofit every building in the most cost-efficient manner.

From renewable energy opportunities to carbon-negative materials and low-carbon technologies, Audette can build a carbon-transition plan for any building. The platform layers operational data with capital planning and a breakdown of costs and energy usage of each piece of equipment and location, as well as forecasts of emissions. This allows for effective, efficient retrofitting and long-term planning for a carbon-negative future.

Property managers can add data to the platform and test out various ideas themselves. The AI projects return on investment, helping teams identify the higher priority changes to make. The platform recognises and suggests methods for maximising efficiencies across an entire business, not just a single building. Audette also connects users to a building scientist to ensure that the AI-backed decisions make business sense.

Audette recently raised $9.5 million (approximately €9.14 million) to support the launch of its technology across 150 North American cities. The initial rollout is planned for 2023 and 2024.

Springwise has spotted other means of decarbonising buildings on a sizeable scale, including a platform that allows real estate investors to monitor and reduce waste and emissions across their properties, and smart technology that prevents excessive use of heating and lighting in office buildings.

Written By Keely Khoury

Reference

A new index shows the influence of climate change in real time
CategoriesSustainable News

A new index shows the influence of climate change in real time

A new index shows the influence of climate change in real time

Spotted: While climate change is undoubtedly leading to more extreme weather events, it can be difficult to understand how climate change is impacting on local weather. After all, how are we to determine if an unseasonably warm day is due to global warming or is simply normal variation in temperature? Climate Central is attempting to answer this question with the Climate Shift Index (CSI), a free tool that reveals the level of influence of carbon emissions on daily high and low temperatures.

Climate Central, is a non-profit organisation and an independent group of scientists who research and report the facts about the changing climate and how it affects people’s lives. Climate Central uses science and big data to generate local information that makes climate change personal and helps show what can be done about it.

The CSI indicates how much more likely or frequent high temperatures and overnight lows have become in a given location. The index uses observation and model-based calculations, along with a clear and easy-to-follow colour-coded map covering the entire continental US, and a simple numeric scale. For example, a CSI level of 3 means the day’s temperatures were made at least three times more likely than they would have been without climate change.

Benjamin Strauss, Climate Central CEO and chief scientist points out that, “Climate change is invisible to most people, but it already affects our daily lives. When it’s too hot to safely work outside, play sports, or walk down a city street, the Climate Shift Index will reveal its fingerprint. When crops wilt, when tornadoes or fires erupt in unseasonal heat, the Climate Shift Index can put those events in context.”

Awareness of the impact of climate change is often seen as a first, and important, step to effecting change. This is why we are seeing a growing number of innovations aimed at measuring local effects of climate change, to help individuals and professionals better counter them. These range from data management platforms aimed at forestry professionals to a ‘heat map’ of climate injustice.

Written By: Lisa Magloff

Website: climatecentral.org

Contact: climatecentral.org/contact

Reference

CategoriesConstruction News

SBP takes another step to boost investment in real estate

 

SBP takes another step to boost investment in real estate

LAHORE/KARACHI: In what is being seen as a positive development for the real estate sector and capital markets, the State Bank of Pakistan on Wednesday reduced the risk weight of banks/DFIs from 200 per cent to 100pc on their investment in units of Real Estate Investment Trusts (REITs) for five years to facilitate development of housing finance and capital markets.

“In order to provide further support to the development of real estate sector, State Bank has amended its capital adequacy regulations by significantly lowering the applicable risk weight from 200 per cent to 100 per cent on banks and DFIs’ investments in the units of REITs,” said a SBP circular.

Besides the revision in the capital adequacy treatment for banks’ investments in REITs, the circular said, the banks’ investment (in REITs) will now be categorised in the “Banking Book” instead of “Trading Book”. However the central bank added that it “may review this revised treatment after a period of five years based on the banks’ exposure and performance of the REITs sector”.

Halving of risk weight of banks, DFIs to help REITs

According to the SBP, “With the changes in capital adequacy regulations, banks and DFIs will now be able to increase their investments in REITs without the need to allocate relatively large amount of capital.

“This will, in turn help banks to promote development of real estate sector in the country. The enhanced participation of financial institutions, backed by regulatory initiatives, would also encourage REIT Management Companies to launch new REITs, providing further boost to the Government’s agenda for development of housing and construction sectors,” it said.

‘A good move’

“This is a good move since the risk weight for banks’ investment in the real estate sector was very high. Banks will now be able to increase their investments in REITs without allocating relatively large amounts of capital. This move would facilitate investment in REITs and potential launch of new REITs,” Samir Ahmed, Knightsbridge Capital Group CEO, told Dawn.

“This change in capital adequacy treatment for banks’ investments in REITs has opened up new avenues of financing for REITs. This means REITs can now arrange financing from the banks; earlier they had to rely on their own equity. The market participation in REITs is likely to increase,” he said.

REITs are companies like closed-end mutual funds that own, operate or finance income-producing real estate. They raise funds from the general public and institutions and deploy these funds through investment in real estate properties. REITs provide an investment opportunity that makes it possible for everybody to own and benefit from real estate by allowing them to invest in portfolios of real estate assets the same way they invest in equities.

“The stockholders of a REIT earn a share of the income produced without actually having to go out and buy, manage or finance a property,” Mr Ahmed said.

REITs invest in a wide range of real estate property types, including offices, apartment buildings, warehouses, retail centres, hospitals, data centres, infrastructure and hotels. Most REITs focus on a particular property type but some hold multiple types of properties in their portfolios.

The SBP had earlier amended provisions of its existing prudential regulations to encourage enhanced participation of banks in REITs that enabled them to make higher investments in REITs to the tune of 15pc of their equity as against the previous limit of 10pc.

Moreover, the SBP has also allowed the banks to count their investments in shares, units, bonds, TFCs and Sukuks issued by the REIT management companies toward achievement of their mandatory targets for housing and construction finance.

“The amendments in SBP’s capital adequacy regulations will further incentivise banks to contribute towards a well-functioning capital market for real estate sector,” said the SBP.

Taxation challenges remain

Welcoming the development, Arif Habib Dolmen Real Estate, which owns the country’s only listed REIT, stated that REITs were a quintessential instrument for the government to document real estate and bring transparency in this sector.

Speaking from Karachi, Mohammad Ejaz, an analyst at Arif Habib Securities, said both SBP and SECP had done their part to encourage establishment of REITs in the country. “Now it is FBR’s turn to provide an enabling environment and facilitate the REIT investments by resolving the taxation challenges,” he said. Elaborating, he said some taxation anomalies such as 25pc tax on dividend income still exist.

“This should be cut to 15pc since REITs distribute 90pc of their profits and have to compete with the large, obscure and informal investors operating in the country’s real estate sector. With the government focused on encouraging construction and housing to boost the economy, REIT is one formal, documented way to promote the real estate sector that largely operates in the grey. Taxation is a major reason we don’t see much development in REITs.”

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