The Competition Commission of Pakistan (CCP) has approved the acquisition of Elite Hospitality Ventures (Pvt) Ltd by JS Hotel REIT. The decision marks a major step in expanding Pakistan’s Shariah-compliant real estate investment trust sector.

Approval Under the Competition Act

According to CCP, the approval was granted under Section 11 of the Competition Act, 2010. JS Hotel REIT will now acquire shares of Elite Hospitality Ventures through a formal Share Purchase Agreement. The REIT operates under the Shariah-compliant Real Estate Investment Trust Regulations, 2022.

Details of the Target Company

Elite Hospitality Ventures is a special-purpose company. It was created to develop and operate a planned four-star Hilton Garden Inn hotel in Hyderabad.

CCP’s Competitive Assessment

The CCP reviewed the structure of the deal and assessed its impact on competition. It examined potential issues in the hospitality market in Hyderabad. However, neither JS Hotel REIT nor Elite Hospitality Ventures is active in the hotel market yet. Therefore, the CCP found no horizontal overlap and no vertical linkages.

No Threat to Market Competition

After reviewing all concerns, the CCP concluded that the transaction does not harm competition. It will not distort the market or create any dominant position. Consequently, the regulator approved the deal under Section 31(1)(d)(i) of the Competition Act.

Expected Impact on Pakistan’s REIT and Hospitality Sector

The approval will support progress on the Hilton Garden Inn project. Moreover, it will further strengthen Pakistan’s growing Shariah-compliant REIT sector. In addition, the acquisition is expected to boost real estate development and hospitality investment in Hyderabad.

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