Dubai Residential REIT Sets IPO Price at AED 1.10 as Demand Soars
Dubai Residential REIT, managed by DHAM REIT Management LLC, has priced its initial public offering (IPO) at AED 1.10 per unit following overwhelming investor demand, setting the stage for a market capitalisation of AED 14.3 billion (USD 3.9 billion) upon listing on the Dubai Financial Market.
The offering drew over AED 56 billion (USD 15 billion) in total demand, prompting an increase in the offering size from 12.5% to 15% of the REIT's total issued unit capital. This translated to the sale of 1.95 billion units and raised AED 2.145 billion (USD 584 million), with the final offer price set at the top of the announced range. Oversubscription exceeded 26 times.
The strong response reflects growing confidence in Dubai's real estate sector and its maturing capital markets. Dubai Holding Group CEO Amit Kaushal said the demand affirms investor trust in the company's strategy and in the UAE's long-term economic vision. Dubai Residential REIT's portfolio includes 35,700 residential units, boasting near-full occupancy and high tenant retention.
Following the IPO, DHAM Investments LLC, a Dubai Holding subsidiary and the sole selling unitholder, will retain an 85% stake in the REIT. Trading of the units under the symbol 'DUBAIRESI' is expected to begin on or around 28 May 2025, pending regulatory approvals.
Retail investors will receive allocation notifications and refunds starting 26 May. Dubai Residential REIT plans to distribute dividends semi-annually, beginning September 2025, with payouts expected to equal at least 80% of annual profit before fair value changes.
The offering is supported by major financial institutions, including Citigroup, Emirates NBD Capital, and Morgan Stanley, as joint global coordinators and bookrunners.
News Source: Emirates News Agency
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sharjah 24
34 minutes ago
- Sharjah 24
SRTA launches ‘On-Demand Buses' service in Sharjah
Flexible, direct mobility solution This innovative service offers passengers a flexible and direct mode of transport from their homes to their daily destinations, particularly in areas not fully served by the current public bus network. It promotes the concept of an integrated transport system across the emirate. Engineer Yousef Khamis Al Othmani, chairman of the Sharjah Roads and Transport Authority (SRTA), emphasised the need for a flexible, sustainable public transport system in light of Sharjah's rapid urban and population expansion. The On-Demand Buses service reflects SRTA's vision for reducing private vehicle use, thereby lowering congestion and carbon emissions. Enhancing quality of life through smart transport Al Othmani added that public transport is central to improving quality of life and mobility within the emirate. SRTA continues to invest in modern transport technologies and expand smart services for all while committing to a safe and sustainable transport environment that aligns with Sharjah's strategic vision for a more balanced and prosperous urban future. Affordable, smart and user-friendly The first phase includes two buses operating daily from 6:00 am to 10:00 pm, with a nominal fare of AED 8 per trip. Children under five travel for free. Users can request and track buses in real time via a smart app, which also allows for cashless payments and instant quality feedback. The system enables users to set their pick-up and drop-off points without being restricted to fixed bus stops or schedules, offering flexibility tailored to residents' and visitors' needs. The service facilitates convenient travel from residential areas to daily destinations, including commercial centres, restaurants, service facilities, and workplaces—reducing dependence on private cars and improving overall accessibility. Smart features Abdulaziz Al Jarwan, Director of Transport Affairs at SRTA, stated that buses are equipped with internal surveillance cameras to ensure a safe travel environment. Linked to AI systems, the buses collect real-time data on passenger numbers, demographics, and usage patterns, enabling data-driven decision-making for improved operations and future planning. The buses are also equipped to accommodate people of determination, with features that ensure easy boarding and movement. The launch coincided with the Eid Al-Adha holidays—an ideal time due to increased travel activity. The initiative is part of SRTA's long-term strategy for a scalable, smart, and sustainable transport network. The first phase will be evaluated to guide potential expansion to other areas in the future, in line with SRTA's mission to improve quality of life and ensure accessible mobility for all.
Zawya
4 hours ago
- Zawya
Sterling holds its own against stronger dollar, trade optimism lends supports
Sterling ticked higher against the dollar on Thursday, one of the few major currencies to hold its own against the greenback which regained ground after weak U.S. data dragged it lower on Wednesday. The pound was up 0.14% at $1.3574, while against the euro it was up 0.1% at 84.16 pence. Sterling remains a touch away from a more than three-year high hit on May 26, underpinned by ongoing dollar weakness with the pound up over 8% this year. Also helping is the fact the UK is the only country to have struck a trade deal with the U.S and was spared from higher U.S. steel and aluminium tariffs, though analysts question how beneficial those factors are. "The trade deal does matter," said Chris Beauchamp, chief market analyst at IG Group. "You might argue it's not a proper trade deal and that it doesn't solve all the problems, but at least it's a sign that there's a more compelling reason to hold the pound rather than be worrying about the euro," Beauchamp added. The Bank of England (BoE) will meet on June 19 to deliver its next policy decision with market bets firmly on the monetary policy committee (MPC) keeping rates steady. There had been expectations of a further 25 bps cut from the BoE at its June meeting but bets were slashed following weak economic data and a hotter-than-expected inflation read last month. On Tuesday, Bank of England Governor Andrew Bailey said he was sticking with a "gradual and careful" approach to cutting interest rates as global trade policy turmoil increasingly clouds the outlook. Reassurance came on Wednesday with a survey showing Britain's services sector returned to tepid growth last month. (Reporting by Lucy Raitano and Johann M Cherian, Editing by Ed Osmond)
Zawya
13 hours ago
- Zawya
Dollar feeble on soft economic data, trade uncertainties
SINGAPORE - The dollar drifted in muted trading on Thursday after weak U.S. economic data revived fears of slow growth and high inflation, while the euro was steady ahead of an expected interest rate cut from the European Central Bank. The soft data, which showed U.S. services sector contracted for the first time in nearly a year in May and an easing labour market, led to a rally in Treasuries and increased the odds of interest rate cuts from the Federal Reserve this year. In Asian hours, currency market moves were tepid as investors were hesitant in making major bets, awaiting developments for fresh cues on the economy, tariffs and trade deals. Markets have been rattled since U.S. President Donald Trump announced a slate of tariffs on countries around the globe on April 2, only to pause some and declare new ones, leading investors to look for alternatives to U.S. assets. The greenback weakness has been the story of the year, with foreign exchange strategists surveyed by Reuters expecting further declines on mounting concerns about the U.S. federal deficit and debt. On Thursday, the dollar was a shade higher against the yen at 143, while the euro stood at $1.1412, not far from the six-week high it touched at the start of the week. Sterling last fetched $1.3544. The dollar index, which measures the U.S. currency against six others, was at 98.87 and has dropped about 9% this year, poised for its weakest yearly performance since 2017. Investors are now awaiting Friday's monthly payrolls figures to gauge the state of the labour market after payroll processing firm ADP reported that U.S. private payrolls increased far less than expected in May. The more comprehensive employment report on Friday is expected to show that non-farm payrolls increased by 130,000 jobs in May after advancing by 177,000 in April, according to a Reuters survey of economists. The unemployment rate is forecast to hold steady at 4.2%. "May's payrolls data tomorrow will be important to see if investor concerns are valid or overdone. A soft labour market report is likely to result in outsize falls in the U.S. dollar," said Mansoor Mohi-uddin, chief economist at Bank of Singapore. Trump redoubled his calls for Federal Reserve Chair Jerome Powell on Wednesday to lower interest rates after the ADP data was released, the latest attack that has stoked worries about the independence of the U.S. central bank and rattled investors. Markets have priced in 56 basis points of rate cuts this year from the Fed, with traders pricing in a 95% chance for easing in September, LSEG data showed. The yield on the U.S. 10-year Treasury note was at 4.363% in Asian hours, just above the four-week low of 4.349% it touched on Wednesday. In other currencies, the Australian dollar was steady at $0.6491, shrugging off Wednesday's weak GDP report while the New Zealand dollar was last at $0.603, just shy of a seven-month high. TRADE DEALS Investors remain worried about U.S. trade negotiations and the lack of progress in hashing out deals ahead of the early July deadline. Trump called China's Xi Jinping tough and "extremely hard to make a deal with" on Wednesday, exposing frictions after the White House raised expectations for a long-awaited phone call between the two leaders this week. Attention will also be on Europe, where the central bank is widely expected to cut rates by 25 bps later on Thursday. Investors will look for clues for what comes after that even as the case grows for a pause in its year-long easing cycle. The ECB has cut rates seven times in 13 months as inflation eased from post-pandemic highs, seeking to prop up a euro zone economy that was struggling even before Trump's erratic economic and trade policy dealt it yet another blow. "Lower energy prices, forthcoming fiscal stimulus, and reduced global recession risks warrant a wait-and-see approach to further policy moves," said Laura Cooper, head of macro credit and investment strategist at Nuveen. "While a potential insurance cut could come in September, it will be contingent on incoming data – yet risks appear skewed to the upside amid depressed trade-led expectations." (Reporting by Ankur Banerjee in Singapore; Editing by Jamie Freed)
