DUBAI, 13th May, 2025 (WAM) -- Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC (the Fund Manager), today announced the offer price range per unit and the start of the subscription period for the initial public offering (IPO) of Dubai Residential REIT, a Shariah-compliant income-generating closed-ended real estate investment fund under establishment and one of the largest owners and operators of residential real estate in Dubai (the REIT), on the Dubai Financial Market (DFM).
The Offer Price Range has been set at between AED1.07 and AED1.10 per Offer Unit. A total of 1,625,000,000 units, representing 12.5 percent of Dubai Residential REIT’s issued unit capital being offered by DHAM Investments LLC, a subsidiary of Dubai Holding, and the current sole unitholder of the REIT.
The Fund Manager reserves the right to amend the size of the offering at any time prior to the end of the subscription period in its sole discretion, subject to the applicable laws of the UAE and the approval of the Securities and Commodities Authority (SCA).
The total offering size is expected to be between AED1,739 million (US$473 million) and AED1,788 million (US$487 million), implying a market capitalisation at listing of between AED13.9 billion (US$3.8 billion) and AED14.3 billion (US$3.9 billion).
Dubai Residential REIT’s offering consists of two tranches, the First Tranche, the UAE Retail Offer, is allocated 10 percent of the Offer Units, representing 162,500,000 units, and is open to retail investors and eligible entities holding a National Investor Number (NIN) with the DFM.
Meanwhile, the Second Tranche, the Institutional Offering, is allocated 90 percent of the Offer Units, representing 1,462,500,000 units, and is open to qualified institutional investors (Professional Investors) outside the United States under Regulation S, subject to applicable UAE laws and SCA approval.
Each successful Subscriber in the First Tranche will be guaranteed a minimum allocation of 2,000 units, provided that the total number of units issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus.
Investors in both tranches can subscribe to the offering from today, 13th May 2025, to 20th May 2025. The final Offer Price will be determined through a book-building process conducted in consultation with the Joint Global Coordinators, the Fund Manager and the Selling Unitholder, and is expected to be announced on 21st May 2025.
The completion of the offering and admission of units to trading on the DFM (Admission) is expected to take place on or around 28th May 2025. The units are expected to trade under the symbol “DUBAIRESI”.
Dubai Residential REIT is the GCC’s first pure-play listed residential leasing-focused REIT and, at the time of listing, is also expected to be the GCC’s largest listed REIT, with a gross asset value (GAV) of AED21.63 billion, almost double the combined GAV of the five largest REITs in the region.
The REIT manages 35,700 residential units strategically positioned in key catchment areas across Dubai, making it one of the largest residential real estate owners and operators in Dubai and the benchmark for residential real estate in the Emirate.
Subject to the REIT Board’s approval and other provisions of the UAE prospectus, 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.