Dubai Holding, via its fully owned subsidiary DHAM REIT Management LLC (the “Fund Manager”), has today announced the indicative price range per unit (the “Units”, and each a “Unit”) (the “Offer Price Range”) and the commencement of the subscription period for the initial public offering (“IPO” or the “Offering”) of Dubai Residential REIT. This Shariah-compliant, income-generating, closed-ended real estate investment trust is currently being established and is among the largest residential property owners and operators in Dubai (the “REIT”). The IPO will be listed on the Dubai Financial Market (“DFM”).
Offer Price Range Details
The Offer Price Range has been set between AED 1.07 and AED 1.10 per Offer Unit (the “Offer Unit”). A total of 1,625,000,000 Units—representing 12.5% of Dubai Residential REIT’s issued unit capital—will be offered by DHAM Investments LLC (the “Selling Unitholder”), a subsidiary of Dubai Holding and currently the sole unitholder of the REIT. The Fund Manager retains the right to modify the Offering size at its sole discretion prior to the close of the subscription period, in accordance with UAE law and subject to approval by the Securities and Commodities Authority (SCA).
The Offering is anticipated to raise between AED 1.739 billion (USD 473 million) and AED 1.788 billion (USD 487 million), resulting in an estimated market capitalisation upon listing of between AED 13.9 billion (USD 3.8 billion) and AED 14.3 billion (USD 3.9 billion).
Subscription Process
The Dubai Residential REIT Offering comprises two tranches:
The First Tranche, known as the UAE Retail Offer, accounts for 10% of the Offer Units, equating to 162,500,000 Units. It is available to retail investors and qualifying entities that hold a National Investor Number (NIN) with the DFM.
The Second Tranche, the Institutional Offering, comprises 90% of the Offer Units—totalling 1,462,500,000 Units—and is open to qualified institutional investors (“Professional Investors”) located outside the United States under Regulation S, in compliance with UAE regulations and SCA approval.
Subscribers in the First Tranche will receive a guaranteed minimum allotment of 2,000 Units, provided the total allocation under this guarantee does not exceed the tranche’s size or breach the terms detailed in the Prospectus.
Investors from both tranches may subscribe from today, 13 May 2025, until 20 May 2025. The final Offer Price will be set through a book-building process conducted in collaboration with the Joint Global Coordinators, the Fund Manager, and the Selling Unitholder, and will be announced on 21 May 2025.
The Offering is expected to be completed, and the Units admitted to trading on the DFM (“Admission”), on or around 28 May 2025. The Units will trade under the symbol “DUBAIRESI”.
