Dubai Holding has announced plans to launch an initial public offering (IPO) for Dubai Residential REIT, a Shariah-compliant real estate investment fund, on the Dubai Financial Market (DFM).
According to today’s announcement, the offering will include 1,625,000,000 units representing 12.5 per cent of the REIT’s issued unit capital.
Trading is expected to begin around May 28, 2025.
Dubai Holding’s landmark IPO
“As one of the cornerstones of Dubai Holding, Dubai Holding Asset Management’s residential leasing portfolio, Dubai Residential, has consistently delivered high-quality communities that meet the evolving needs of Dubai’s diverse population. 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,” Amit Kaushal, Group Chief Executive Officer of Dubai Holding said.
“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. As we prepare for the listing, we look forward to working alongside our Dubai Residential REIT stakeholders to further enhance our offerings and continue driving the growth of Dubai as a leading global hub for living and investment,” he added.
The REIT will be the GCC’s first pure-play listed residential leasing-focused REIT and is expected to be the region’s largest listed REIT at the time of listing, with a gross asset value (GAV) of AED21.63 billion.
Dubai Residential REIT manages 35,700 residential units across 21 communities in Dubai, catering to various market segments including premium, community, affordable, and corporate housing.
The subscription period for the offering will run from May 13 to May 20, 2025, with the final offer price announcement scheduled for May 21.
“Our residential leasing journey spans from some of the earliest purpose-built developments over 20 years ago to an exceptional portfolio of properties today that reflect Dubai’s ongoing growth and development. This rich legacy, combined with a relentless commitment to quality, has solidified our role as a creator of diversified, connected communities, enabling us to capture the significant opportunities emerging from Dubai’s property market. The decision to launch the IPO of Dubai Residential REIT marks a natural evolution in our story, offering investors a unique opportunity to participate in the GCC’s largest and first pure-play listed residential leasing-focused REIT,” Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC said.
“With a diversified portfolio valued at over AED 21 billion, this milestone enables us to expand our impact, deliver sustainable unitholder returns, and continue shaping the future of urban living in Dubai. The launch of Dubai Residential REIT, featuring a portfolio comprising 35,700 residential units and serving more than 140,000 residents across 21 vibrant communities, marks a significant expansion of our investment offerings. This Offering paves the way for a broader segment of investors to participate in Dubai’s dynamic real estate growth story,” he added.
The REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025.
It expects that the sum of its first two dividend payments will be the higher of AED1,100 million or 80 per cent of profit for the period before changes in fair value of investment property.
For the financial year ending December 31, 2024, the REIT reported revenue of AED 1,793 million and a pro forma profit of AED 2,640 million.
Its average occupancy rate increased from 93 per cent in 2022 to 97 per cent by December 2024, with a tenant retention rate of 87 per cent for 2024.
Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Morgan Stanley & Co. International plc are acting as joint global coordinators and joint bookrunners for the offering.
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