Dubai Residential REIT offers 12.5% stake in IPO
5 May 2025 10:20
A.SREENIVASA REDDY (ABU DHABI) Dubai Residential REIT, the GCC's first pure-play residential leasing-focused REIT, has launched its initial public offering (IPO) on the Dubai Financial Market (DFM), offering 1.625 billion units, or 12.5% of its issued unit capital. The subscription period runs from May 13 to 20, with trading expected to begin on or around May 28.Unlike conventional equity offerings, the REIT is issuing units rather than shares, as it is structured as a Shariah-compliant closed-ended trust. The offering has received Shariah compliance approvals from both the REIT's internal committee and Emirates NBD Bank.The IPO is divided into two tranches. The first tranche is allocated to retail investors in the UAE and comprises 10% of the total offer—162.5 million units. Each successful retail investor is guaranteed a minimum allocation of 2,000 units. The second tranche, comprising 90% or 1.4625 billion units, is earmarked for qualified institutional investors.With a gross asset value (GAV) of Dh21.63 billion and a portfolio of 35,700 residential units across 21 communities, the REIT is set to become the largest listed REIT in the GCC. It caters to all housing segments—premium, community, affordable and corporate—with a tenant mix of 57% individuals and 43% corporates. Occupancy reached 97% in 2024.Malek Al Malek, Chairman of the REIT's Investment Committee, said the IPO gives investors a chance to participate in a resilient, income-generating platform backed by Dubai Holding's broader real estate ecosystem.
Dubai Residential REIT is owned by DHAM Investments, which will remain the majority unitholder post-IPO. DHAM Investments LLC is owned by DHAM LLC, which is a subsidiary of Dubai Holding.
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