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Dubai Holding is looking to raise 2.14 billion UAE dirhams ($584 million) through its residential REIT IPO, with the price set at AED 1.10 per unit, making it the largest REIT in the GCC.
The top the range pricing for the offering of 1,950,000,000 units implies a market capitalisation of AED 14.3 billion at listing.
The offering was oversubscribed 26 times in aggregate, with total gross demand of over AED 56 billion, with Dubai Holding upsizing the offering to 15% from the previously announced 12.5% of Dubai Residential REIT’s total issued unit capital.
The final offer price implies a gross dividend yield of 7.7% for 2025.
DHAM Investments, a subsidiary of Dubai Holding, and the current sole unitholder of the REIT is selling the units. Upon listing, the selling unitholder will continue to own a majority 85% stake in the REIT.
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 completion of the offering and trading on the Dubai Financial Market will take place on or around 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.
(Writing by Bindu Rai, editing by Seban Scaria)
