Kohat Cement Company Limited (PSX: KOHC) has established a wholly-owned subsidiary, Ultra Properties (Private) Limited, signaling its foray into the real estate sector.

The cement manufacturer announced the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

The new entity will be carrying out the real estate business, including marketing and development of all types of immovable properties for sale or rental purposes subject to requisite regulatory approvals and compliance with applicable laws and regulations, the notice said.

The Board has further decided to lease out one of its investment properties to the proposed subsidiary which shall construct multi-story commercial building(s) thereon for rental purposes. For this purpose, the Board has approved an investment of up to Rs. 750 million in the proposed subsidiary, by way of equity and / or interest-bearing loan, it added.

Moreover, the notice said that the Board also approved the sub-division of the face value of Kohat Cement’s shares from Rs. 10 per share to Rs. 2 per share i.e., in the ratio of 5 shares for 1 share.Kohat Cement to Enter Real Estate Sector With Rs. 750 Million Investment