Imperium Hospitality (Private) Limited (“IHPL” or “the Company”) is a private limited entity incorporated in Pakistan on July 12, 2016, under the Companies Ordinance, 1984 (now the Companies Act, 2017). It operates as a subsidiary of the Monnoo Group, with a vision to pioneer a state-of-the-art corporate infrastructure and redefine commercial real estate and business spaces. The Company’s registered office is located in Lahore, Pakistan.

Following Partition, the Monnoo family relocated to East Pakistan and later expanded into the textile industry, establishing five spinning mills—three in West Pakistan and two in East Pakistan. Over the decades, the Monnoo Group has emerged as a leading industrial conglomerate, contributing significantly to Pakistan’s economic growth. The Group’s diversified portfolio includes twelve textile units, agricultural farms, and research units specializing in agricultural products. Monnoo Group has gained global recognition for its expertise in textile and agriculture sectors. In textiles, its product range includes yarns, ecru yarn, fancy/novelty yarns, mélange yarns, and sewing threads, whereas its agricultural operations focus on tissue culture, orchards, and farm development.

Imperium Hospitality (Private) Limited is primarily engaged in business as builders and developers, focusing on the development, management, and operation of real estate ventures. Currently, the Company is focused on the development and construction of Imperium Tower in Gulberg, Lahore. This architecturally modern twin-tower project consists of four basement levels, a ground floor, and eighteen additional stories. Designed to set new benchmarks in commercial real estate, Imperium Tower aims to combine luxury, functionality, and modern aesthetics.

Imperium Hospitality (Private) Limited is wholly owned by the sponsoring family, with M/s Kaisar Shahzada (Private) Limited holding a majority stake of 36%. The remaining ownership is equally distributed among Mr. Danish Kaisar Monnoo, Mr. Sheraz Jehangir Monnoo, and Mr. Shahbaz Alam Monnoo, each holding 21% of the shares.

The Company's ownership structure appears stable, with no anticipated changes in shareholding in the near future. The Monnoo Group, through its investment arm, Kaisar Shahzada (Private) Limited, retains a significant stake, ensuring continuity and strategic direction. However, further strengthening of the structure through a well-defined and streamlined shareholding arrangement among family members, along with a formalized succession plan, would enhance long-term stability. Proper documentation of the succession framework would also provide greater clarity for practical implementation and future leadership transitions.

The Monnoo family, the principal sponsors of the Group, is widely recognized for its strong business acumen. Having operated in Pakistan for several decades, the Group has successfully expanded into multiple industries, including textiles, real estate, and agriculture. Its extensive industry expertise, strategic vision, and ability to adapt to evolving market dynamics have reinforced its position as a prominent business conglomerate.

The Monnoo Group’s diversified investment portfolio, spanning textile, power, real estate, and agriculture, reflects its strong financial standing. With multiple entities under its umbrella, the Group is well-positioned to provide financial support to Imperium Hospitality (Private) Limited, should the need arise. Its diversified asset base and stable revenue streams further reinforce the sponsors’ ability to back the Company’s long-term growth and sustainability.

The Board of Imperium Hospitality (Private) Limited consists of three members, including Chief Executive Officer & Director, Mr. Sheraz Jehangir Monnoo, and two non-executive directors, Mr. Danish Kaisar Monnoo and Mr. Shahbaz Alam Monnoo. The Company does not have any independent directors, and the board is primarily family-dominated. All members have been associated with the board for over two decades, ensuring continuity and strategic alignment with the Group’s long-term vision.

The board members are seasoned professionals with extensive industry experience. Mr. Sheraz Jehangir Monnoo, the CEO & Director of the Company, has over twenty years of expertise in the sector. As the driving force behind the development of Imperium Tower, he leads with a visionary approach and also holds director positions in other Monnoo Group companies. His leadership, coupled with the business acumen of the other board members, reinforces the Company’s strategic direction and operational efficiency.

The Company does not have any formal board committees, and all board members concurrently hold director positions in other Group entities. This structure, while ensuring experienced leadership, limits the scope for impartial oversight and enhanced corporate governance. Establishing dedicated board committees, including audit and risk management committees, could improve governance mechanisms and decision-making processes.

The Company’s financial statements are audited by M/S Mushtaq & Co., Chartered Accountants, a State Bank of Pakistan (SBP) Category ‘B’ audit firm. For the year ended June 30, 2024, the auditors issued an unqualified audit opinion, affirming that the financial statements present a true and fair view of the Company’s financial position in accordance with applicable reporting standards. 

Imperium Hospitality (Private) Limited follows a simplified organizational structure, designed to streamline operations and enhance managerial efficiency. The functions reporting to the CEO are categorized into five key areas: Operations, Finance, Sales, Consultants, and In-House Engineers. Each of these functions is further divided into specialized sub-units, ensuring a structured approach to managing the Company’s diverse activities. The entire operational framework falls under the direct oversight of the CEO, facilitating a centralized decision-making process.

The Company’s leadership is spearheaded by Mr. Sheraz Jehangir Monnoo, who has been associated with the Monnoo Group since its inception. Holding a bachelor’s degree from the University of Boston, USA, he brings a strategic vision and deep industry expertise to the organization. Supporting him is a team of qualified professionals, each bringing relevant industry experience. A key member of this team is Mr. Muhammad Shahbaz, the Chief Financial Officer (CFO), who is a Chartered Accountant and has been associated with Monnoo Group for several years. His financial expertise plays a crucial role in ensuring the Company’s fiscal discipline and long-term financial sustainability.

Backed by an experienced management team, IHPL continues to strengthen its position and expand its footprint in Pakistan’s real estate industry. The well-defined functional roles within the Company ensure that operational objectives are effectively aligned with its strategic vision. By leveraging its expertise, the management team is driving growth, operational efficiency, and business expansion.

The Company has deployed an Oracle-based ERP solution, which integrates multiple operational modules to track daily and monthly reports. This technology-driven system enables real-time monitoring and data-driven decision-making, ensuring that management maintains a high level of operational oversight and efficiency.

To maintain operational efficiency and strong internal controls, the Company has implemented a robust oversight mechanism. It has an in-house team of engineers, supplemented by an outsourced design development team, project managers, construction consultants, and contractors. This integrated framework allows the Company to identify, assess, and manage risks associated with the construction and development of high-rise buildings. Through this proactive risk management approach, IHPL ensures that all projects are executed with precision, compliance, and quality assurance.

Pakistan’s real estate sector operates in a rapidly evolving landscape, influenced by demographic shifts, economic policies, technological advancements, and sustainability trends. While external financing risks and policy volatility remain key challenges, the government’s supportive initiatives and the industry's adaptability continue to drive growth and transformation. Recent economic indicators present a mixed outlook for the sector. Inflation has significantly declined, reaching 1.5% in February 2025, the lowest in nearly a decade. This deflationary trend has prompted the central bank to implement consecutive rate cuts, reducing the key policy rate to 12%, which is expected to stimulate real estate activity. However, external financing concerns persist, with over $22 billion in external debt repayments due in 2025, highlighting the need for fiscal prudence and structural reforms to sustain economic stability.

As a new entrant in the real estate sector, Imperium Hospitality (Private) Limited (IHPL) is actively establishing its brand identity, with ‘Imperium Tower’ serving as its flagship project. Despite being in the early stages, the Company has made notable progress, garnering strong customer interest. A testament to this momentum is the successful sale of Block A of Imperium Tower to M/S Fauji Fertilizer Company Limited (FFC), a significant milestone in strengthening IHPL’s market positioning. In terms of competition, Tricon Tower and Askari Tower are key players in the landscape. However, it is noteworthy that both towers currently have no vacant space available.

The successful completion and handover of Block A to FFC granted them full ownership of all associated rights and interests, generating approximately PKR 3.7 billion in revenue for FY24. Looking ahead, rental income from Tower B is expected to contribute substantially to the Company’s revenue. The contractual revenue stream for Tower B has not commenced yet, but IHPL plans to lease a significant portion of the space to IT firms and multinational corporations. Discussions are ongoing with potential tenants, including a French company, a technology firm, and an entity planning to establish a modern wellness center. Currently, two to three lease agreements are in the final negotiation stages.

Since the rental operations of Tower B have yet to commence, IHPL’s core business margins are not yet fully materialized. However, profitability is expected to improve significantly upon the project’s completion and leasing activities, contributing to the Company’s long-term financial stability.

Block B is in the final stages of completion, with meticulous finishing work underway. According to the latest management update, it is expected to be fully ready for handover to prospective tenants at the start of the new fiscal year. The resulting revenue inflows will contribute significantly to the company's financial stability and long-term sustainability, reinforcing its growth and operational resilience. 

Imperium Hospitality (Private) Limited manages its working capital requirements through a combination of internally generated funds, interest-free loans from sponsors, and long-term borrowings (LTBs). As of FY24, the total quantum of LTBs stood at PKR 399 million, representing 80% of the total debt portfolio. This approach ensures financial flexibility while minimizing reliance on external commercial financing. 

During FY24, the Company’s Funds from Operations (FCFO) were recorded at approximately PKR 508 million. With anticipated revenue growth in the coming years, EBITDA is expected to increase at a stable rate, strengthening the Company’s operational cash flows. Additionally, with finance costs remaining stagnant and improved FCFO, the Company is positioned to achieve a stronger debt coverage profile over time.

IHPL maintains a leveraged capital structure, though its leverage ratio has seen a substantial decline in recent years. As of FY24, the leverage ratio stood at 30.3%, a significant improvement from 85% in FY23 and 66.6% in FY22. This decline reflects the Company’s efforts to strengthen its equity base, which reached PKR 2,159 million, while total borrowings stood at PKR 497 million. The improving capitalization profile is indicative of IHPL’s strategic financial management, ensuring a sustainable balance between debt and equity.