Dubai Residential REIT sets IPO price range, eyes up to Dhs1.79bn raise

Dubai Holding, through its subsidiary DHAM REIT Management, on Monday announced the price range and opened the subscription period for the initial public offering (IPO) of Dubai Residential REIT on the Dubai Financial Market (DFM), with a planned listing on May 28.

The offer price range has been set between Dhs1.07 and Dhs1.10 per unit, implying a market capitalisation of between Dhs13.9bn and Dhs14.3bn.

The REIT, a Shariah-compliant closed-ended income-generating fund, is expected to become the GCC’s largest listed REIT at the time of listing.

Dubai Residential REIT: Details

Dubai Residential REIT is offering 1.625bn units, representing 12.5 per cent of its issued capital.

The offering comprises two tranches: 10 per cent allocated to retail investors in the UAE and 90 per cent to qualified institutional investors. The IPO subscription window opens today and will close on May 20.

The final offer price will be announced on May 21 following a book-building process.

The offering is expected to raise between Dhs1.739bn and Dhs1.788bn.

The REIT anticipates paying at least Dhs 1.1bn in dividends for 2025, with a targeted dividend distribution of 80 per cent of profit before fair value changes in investment properties starting 2026.

The price range implies a gross dividend yield of 7.9 per cent at the low end and 7.7 per cent at the high end for 2025.

REIT portfolio in Dubai

The REIT, which owns and operates over 35,700 residential units across 21 communities in Dubai, including Bluewaters and City Walk, had a gross asset value of Dhs21.63bn at the time of the announcement.

The IPO is supported by Joint Global Coordinators and Bookrunners Citigroup, Emirates NBD Capital, and Morgan Stanley, with Emirates NBD Bank as Lead Receiving Bank. Other receiving banks include ADCB, FAB, Mashreq, ADIB, and CBD.

xCube LLC, a DFM-authorised price stabilisation manager, will manage post-listing stabilisation transactions. Dubai Residential REIT and the selling unit holder, DHAM Investments, are subject to a 180-day lock-up period.

The REIT’s Shariah compliance has been certified by both its internal Shariah Supervisory Committee and that of Emirates NBD.

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