Dubai Holding Aims To Raise Up to $487mln for Its Residential REIT IPO

Dubai Holding is looking to raise up to 1.79 billion UAE dirhams ($487 million) from its residential real estate investment trust IPO, the first offering for the emirate in 2025.

DHAM Investments, a subsidiary of Dubai Holding, and the current sole unitholder of the REIT is selling the units. It will offer 1.62 billion units, representing 12.5% of issued unit capital. The price range has been set between AED 1.07 and AED 1.10 per unit, implying a market capitalisation between AED 13.9 billion and AED 14.3 billion for the investment conglomerate.

The offering subscription period starts today, 13 May 2025, and closes on 20 May 2025. The final offer price is expected to be announced on 21 May 2025.

There is an option to amend the size of the offering at any time prior to the end of the subscription period.

The nearly $500 million offering was the first global IPO of such magnitude since the April 2 US Liberation Day that set in motion a cycle of economic turbulence across the globe, JPMorgan’s Managing Director and Co-Head of Equity Capital Markets, International for EMEA and APAC, Aloke Gupte, told Zawya earlier.

Dubai Holding said the REIT expects to distribute at least AED 1,100 million in dividends for 2025, rising to 80% of profit before fair value changes in investment property by 2026.

The price range implies a 2025 gross dividend yield of 7.9% at the low end and 7.7% at the high end.

The two-tranche REIT includes a 10% retail offering, representing 162.5 million units, while the second tranche comprises the institutional offering, which is allocated 90%, and is open to qualified institutional investors.

The REIT is expected to list on the Dubai Financial Market (DFM) on 28 May 2025.

 Citigroup Global Markets Limited, Emirates NBD Capital, and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Joint Bookrunners. Emirates NBD Bank has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited acting in conjunction with Arqaam Securities LLC, and First Abu Dhabi Bank are acting as joint bookrunners for the offering.

Dubai Residential REIT is the GCC’s first listed residential leasing-focused REIT and manages 35,700 residential units across Dubai.