Dubai Holding is set to launch an initial public offering (IPO) for its Dubai Residential Real Estate Investment Trust (REIT) on the Dubai Financial Market (DFM). The IPO will offer a total of 1.625 billion shares, which accounts for 12.5 percent of the issued unit capital of Dubai Residential REIT.

Credit: Reuters

Trading is expected to commence on or around May 28, following the final price offer announcement scheduled for May 21. The subscription period for the offering will run from May 13 to May 20, with the First Tranche allocated 10 percent of the offer units, totaling 162 500 000 shares. The Second Tranche will comprise 90 percent of the offer units, amounting to 1 462 500 000 shares.

Dubai Residential REIT is a Shariah-compliant fund that currently manages 35 700 residential units across various prime locations in Dubai. DHAM Investments, a subsidiary of Dubai Holding, is presently the sole unitholder of the REIT. Amit Kaushal, Group CEO of Dubai Holding, stated that this IPO offers investors a unique chance to engage in the success story of Dubai’s real estate market.

Kaushal also noted that the integration of Nakheel and Meydan’s residential portfolios under Dubai Holding last year marked a significant milestone for Dubai Residential REIT, enhancing its position as one of the largest residential leasing platforms in the region. Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management, emphasized that the IPO allows a broader range of investors to partake in Dubai’s dynamic real estate growth.

The Dubai Residential REIT aims to be the largest listed REIT in the Gulf Cooperation Council (GCC) region, with a gross asset value of 21.63 billion dirhams (approximately US$5.89 billion). The REIT plans to implement a semi-annual dividend distribution policy, with payments scheduled for April and September each year, starting in September 2025. The first two dividend payments are expected to total at least AED1,100 million or 80 percent of profit for the period, subject to Board approval.