Dubai Holding announces IPO for Dubai Residential REIT

Dubai Holding is preparing an initial public offering (IPO) of its residential real-estate investment trust (REIT) on the Dubai Financial Market (DFM).

A total of 1.625 billion shares will be on offer, representing 12.5 per cent of Dubai Residential REIT’s issued unit capital.

It is expected to start trading on or around May 28 after the final price offer announcement on May 21. 

The offering subscription period is expected to run from May 13 to 20.

The First Tranche is allocated 10 per cent of the offer units, representing 162,500,000, while the Second Tranche is allocated 90 per cent of the Offer Units, amounting to 1,462,500,000 units.

Dubai residential REIT is a Shariah-compliant investment fund that manages 35,700 residential units across different key parts of Dubai.

DHAM Investments, a subsidiary of Dubai Holding, is currently the sole unitholder of Dubai Residential REIT.

"This IPO presents investors with a unique opportunity to participate in this success story while benefiting from the wider capabilities and opportunities within the broader Dubai Holding ecosystem," said Amit Kaushal, Group CEO of Dubai Holding.

"The integration of Nakheel and Meydan’s residential portfolios under Dubai Holding last year was a significant milestone in Dubai Residential’s journey that enhanced its status as one of the region’s largest residential leasing platforms."

The IPO "paves the way for a broader segment of investors to participate in Dubai’s dynamic real estate growth story," highlighted Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC.

“The Dubai Residential REIT provides investors with a straightforward and economical path to invest in premier, income-generating residential real estate assets across the city, without the complexities of direct property ownership and management," added Ahmed Al Suwaidi, managing director of DHAM REIT Management LLC.

Dubai Residential REIT is expected to be the Gulf Cooperation Council (GCC) region's largest listed REIT, with a gross asset value (GAV) of 21.63 billion dirhams (US$5.89 billion), Dubai Holding said in a statement.

Dubai Residential REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025. The REIT expects that the sum of its first two dividend payments, expected to be made in September 2025 and April 2026, will be higher of: (i) AED1,100 million; and (ii) an amount equal to 80 per cent of profit for the period before changes in fair value of investment property for each accounting period, subject to Board approval.