Dubai: Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC, 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. This Shariah-compliant, income-generating, closed-ended real estate investment fund is under establishment and is one of the largest owners and operators of residential real estate in Dubai, with its listing set for the Dubai Financial Market (DFM).
According to Emirates News Agency, the Offer Price Range has been set 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, are being offered by DHAM Investments LLC, a subsidiary of Dubai Holding, which is currently the sole unitholder of the REIT. The Fund Manager retains the right to amend the size of the offering at any time before the end of the subscription period at its discretion, in compliance with UAE laws and with the approval of the Securities and Commodities Authority (SCA).
The total offering size is projected 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 is structured into two tranches. The First Tranche, known as the UAE Retail Offer, is allocated 10 percent of the Offer Units, amounting to 162,500,000 units, and is available to retail investors and eligible entities with a National Investor Number (NIN) with the DFM. The Second Tranche, the Institutional Offering, comprises 90 percent of the Offer Units, or 1,462,500,000 units, and is open to qualified institutional 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 the total number of units issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions outlined 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 occur on or around 28th May 2025, with the units anticipated to trade under the symbol 'DUBAIRESI'. Dubai Residential REIT is the GCC's first pure-play listed residential leasing-focused REIT and is expected to be the GCC's largest listed REIT at the time of listing, with a gross asset value (GAV) of AED21.63 billion, nearly double the combined GAV of the five largest REITs in the region.
The REIT manages 35,700 residential units strategically located in key areas across Dubai, establishing itself as one of the largest residential real estate owners and operators in Dubai and setting 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 plans to adopt a semi-annual dividend distribution policy, with payments scheduled for April and September each year, starting from September 2025.