Source: Enterprise News Egypt
Dubai Holding Set to Unveil IPO for Premier Real Estate Investment Fund, Opening Doors to Global Investors.
So Dubai Holding is all set for an IPO for this Sharia-compliant REIT, making it a major landmark in the setting up of capital markets and the real estate domain here in the emirate. The REIT will be managed by the fully owned subsidiary DHAM REIT Management LLC, and will be listed on the Dubai Financial Market (DFM), with subscriptions running between May 13 and May 20.
Listing the largest REIT GCC by gross asset value, the offering comprises 1.62 billion units amounting to 12.5% of the total issued unit capital of Dubai Residential REIT. With an asset value of Dh21.63 billion, this is ‘almost double the combined GAV of the five largest REITs in the region’
Two-Tranche IPO Structure
The Offer will comprise two tranches:
Tranche One: 10% of the total offering (162.5 million units) is reserved for UAE retail investors and entities with a National Investor Number (NIN). Every fortunate subscriber is guaranteed at least an allocation of 2,000 units unless such amount exceeds the tranche size.
Tranche Two: The remaining 90% (1.46 billion units) is reserved for institutional investors, reflecting high expectations of heavy participation from strategic and long-term backers.
DHAM Investments will retain 87.5% of Dubai Residential REIT’s post-IPO.
Dividend policy for new REIT
The Dubai Residential REIT intends to adopt a semi-annual dividend payment policy – in April and September – beginning September 2025.
It expects the sum of its first 2 dividend payments to be the following:
- Dh1.10 billion; and
- An amount equal to 80% of profit for the period before changes in fair value of investment property, with respect to its financial results for the year ended December 31, 2025.
A Strategic Portfolio
The REIT shall be a strong residential asset portfolio under Dubai Holding Asset Management. The integration with the two major developer entities, i.e., Nakheel and Meydan, whose residential portfolios were merged under Dubai Holding last year. The platform offered thereupon shall continue to grow.
“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.,” said Amit Kaushal, Group CEO at 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 IPO presents investors with a unique investment opportunity to participate in this success story while benefiting from the wider capabilities and opportunities within the broader Dubai Holding ecosystem.”
Investor Appeal
The Dubai Residential REIT basket of assets totals 35,700 residential units and with more than 140,000 residents in 21 communities. The mechanism of Real Estate Investment Trusts (REITs) enables investors to engage with diversified portfolios of property assets that generate income. Unlike existing REITs, like Al Mal Capital hosted by DFM, this REIT, thanks to its size and backing from Dubai Holding, stands apart.
A company statement emphasized that the offering “The REIT benefits from the broader residential ecosystem curated by Dubai Holding, a global investment leader with one of the largest land banks in the Emirate of Dubai,” said a statement.
