Dubai Residential REIT IPO price set with $3.9bn valuation
Dubai Holding has announced the successful completion of the book building and subscription process for the initial public offering of Dubai Residential REIT on the Dubai Financial Market and has set the final offer price at AED1.10 per Offer Unit.
This implies a market capitalisation upon listing of AED14.3bn ($3.9bn) and a gross dividend yield of 7.7 per cent for 2025.
Dubai Residential REIT
The total gross demand reached more than AED56bn ($15bn), resulting in an overall oversubscription of over 26 times at the final offer price.
Reflecting the exceptionally strong demand, the final offer price was set at the top end of the price range, enabling the company to raise AED 2.145bn ($584m) through the IPO.
Amit Kaushal, Group Chief Executive Officer of Dubai Holding, said: 'The significant demand for the initial public offering of Dubai Residential REIT from both local and international investors is a powerful endorsement of Dubai Holding's strategic vision and the strength of our residential leasing portfolio, which has been carefully developed and managed over more than two decades to meet the evolving needs of Dubai's diverse population.
'This investor confidence speaks not only to the resilience of the UAE's economic vision and Dubai's long-term growth trajectory, but also highlights the increasing depth, maturity and global appeal of its capital markets.
'We are confident in the ability of Dubai Residential REIT to deliver sustainable, long-term performance and, as we look ahead, our focus remains firmly on shaping the future of urban living in Dubai and contributing to the city's continued evolution as a global hub for investment, innovation and high-quality living.'
Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC, said: 'The strong investor demand clearly signals a growing appetite for stable, income-generating assets in Dubai's vibrant and mature real estate sector, the core principle upon which the REIT was established.
'With a diversified portfolio comprising 35,700 residential units across multiple segments and supported by near-full occupancy and high retention rates, Dubai Residential has consistently demonstrated its ability to generate sustainable, long-term returns.
'This robust performance firmly positions Dubai Residential REIT as the benchmark for residential leasing in Dubai, reinforcing its role in shaping the future of urban living in the city.'
The Offering comprised a total of 1,950,000,000 Units, representing 15 per cent of Dubai Residential REIT's issued unit capital, offered by DHAM Investments LLC.
Investors who subscribed through the UAE Retail Offering (First Tranche) will receive an SMS confirmation of their respective allocation on May 26, 2025, with refunds due to commence from the same date.
The completion of the Offering and admission of Units to trading on the DFM is expected to take place on or around May 28.
Dubai Residential REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025.
The REIT announced that the sum of its first two dividend payments, expected to be made in September 2025 and April 2026, will be the higher of:
(i) AED1.1bn
(ii) An amount equal to 80 per cent of profit for the period before changes in fair value of investment property, in respect of its financial results for the year ending December 31, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
UAE helped US regulators frame digital asset policy, Circle president says
Stablecoin issuer Circle Internet Group says the UAE has played a vital role in helping US regulators frame digital asset policies, reflecting the growing influence of the Emirates in the global technology stage. The company, which manages the world's second-biggest stablecoin, USDC, raised more than $1 billion at its initial public offering on the New York Stock Exchange on Thursday, reflecting the legitimacy of digital assets and the growing attention they attract from regulators, its president Heath Tarbert told The National. The listing valued the New York City-based Circle at around $6.8 billion after it priced its IPO at $31 per share, well above the projected top range of $27 and $28, making it one of the most prominent crypto firms that has tapped into equity markets. With the emergence of digital asset providers in the markets, regulation becomes more magnified especially in the US, which has banked on fellow forward-looking and tech-oriented nations such as the UAE for policies that would be a standard globally, said Mr Tarbert, who also served as assistant secretary of the US Treasury and chairman of the Commodity Futures Trading Commission. "While people do look to the US, it has been looking elsewhere as well for ideas, given the importance of digital assets and trying to get it right, and they've looked no further than the UAE," he said in an interview. "I would commend … particularly the financial services authorities in Dubai and Abu Dhabi for being at the forefront of this because they've actually helped inform US policymakers … there's a real realisation that stablecoins in particular can do a lot for our financial system." Cryptocurrencies in general are notoriously driven by trends and political developments. US President Donald Trump, arguably the world's biggest backer of crypto, gave an unprecedented boost to the sector – most notably Bitcoin – which scaled multiple highs early in his second term. "Politics can play a role in anything, but it's ultimately fundamental technology that will prevail," Mr Tarbert said, noting that Mr Trump "seeing the importance" of crypto "can also help the US continue to be a leader in technology". A stablecoin is a type of cryptocurrency that is pegged to a fiat currency and tends to be less volatile, unlike Bitcoin and the like, for which swings are influenced by simple factors such as tweets and hype. Unlike legacy financial institutions that require paperwork, approvals and physical branches, stablecoins only require an internet connection and a digital wallet. This removes barriers and allows anyone, anywhere, to send, receive and store money without needing a bank. AE Coin, the first regulated digital currency in the UAE, was granted final approval by local authorities and is scheduled to be launched 'soon'. In April, Abu Dhabi entities IHC, ADQ and First Abu Dhabi Bank plan to launch a dirham-backed stablecoin, which will be fully regulated by the UAE Central Bank, aimed at easing payment solutions. Tether, whose USDT is the world's biggest stablecoin, in August received the go-ahead to develop a stablecoin in the UAE. And Circle, which last year incorporated a unit in Abu Dhabi, partnered with Binance in December to incorporate USDC into products that can be used locally. Mr Tarbert said stablecoins will allow users to move in and out of digital assets, in addition to being a store of value globally, helping secure their finances. In particular, the UAE, a major source of remittance outflows, can benefit from their secure nature, he added. "People want to hold things like dollars in particular, but also euros and other currencies in their wallets safely and securely," he said. "The UAE is a major remittance corridor in the world … [stablecoins will provide] that fulcrum between east and west, north and south."
Arabian Post
an hour ago
- Arabian Post
A sordid tale of the Blackstone IPO and a jailed NRI private bankster!
Matein Khalid I have had a neurological soft corner for Wall Street's alternative asset manager stocks ever since I resisted the come hither importunings of multiple Morgan Stanley (MS) managing directors before the firm sold its private wealth division in the DIFC to Credit Suisse. Everyone of these MS honchos wanted me to subscribe to the Blackstone IPO in the summer of 2007 at $32. They assured me that the biggest institutional investors in the UAE had all subscribed to the IPO and I was even excluded from a dinner with Stephen Schwartzmann, Blacktone's founder and chairman, since I refused to give MS an order for a $50 million IPO bid. By the summer of 2007, I was convinced that the world was headed into a traumatic global recession and even published an article in English which would have saved my fellow Dubai investors billions of dollars had they bothered to read it for free in the Khaleej Times as far back as January 2007. This article accurately predicted the global financial meltdown a year before it happened and is uploaded above. ADVERTISEMENT Naturally, these Morgan Stanley private bankers despite their fancy titles of MD, Imperial Wizards, King of Kings and Chief Concubine were clueless about the nuances of the global capital markets. I have learnt the hard way that the private banking and wealth business in the Middle East is really the blind leading the blind to the slaughterhouse, invariably with high octane leverage and absurdly high fees for the privileges of helping you gut your financial net-worth in the capital markets they barely understand. I sealed my unpopularity with Morgan Stanely's pinstriped bureaucrats in Dubai when I wrote successive articles, listing myriad reasons why I wanted to short both Morgan Stanley and Blackstone at 32. History or a cursory look at your smartphone will record that MS almost failed in the post Lehman Wall Street panic and the Blackstone IPO plunged from 32 to 4. To compound the insult that Dubai's top NRI investors faced as they haemorrhaged money on the advice of the MS clowns, the top Indian broker on the MS bench (Manoj Prasad) was jailed for fraud, money laundering and trying to bribe a CBI officer in India. So much for Wall Street/Swiss due diligence/ethics when it comes time to fleece the leveraged NRI lambs in the Gulf. My readers know I wrote successive columns in the UAE/British media recommending investors buy Blackstone (BX) shares at 10-12 when the distribution yield was 9%. I even recommended in writing to the chairman of the royal investment office where I was CIO not to allocate $25 million to Abraaj Capital for a board seat that meant squat at 3.5X book value when he could invest in Blackstone at $10 a share, way below book value. That $25 million went to money heaven when Abraaj failed in 2018 after Arif Naqvi's criminal fraud. Blackstone shares I recommended rose from $10 in 2010 to as high as $200. So that $25 million in Abraaj's eternal money heaven would be valued at $500 million if my poor chairman who had never heard of Steve Schwarzman but Magu, our Group CFO, a Karachi accountant, was dazzled by the intellectual brilliance of Arif Naqvi, the Gulf media's financier of the millennium. Moral of the story? If you think Wharton is expensive, try ignorance! Blackstone is now the planet's biggest alt asset manager with $1.2 trillion AUM and is valued at $167 billion on the NYSE. I am a nervous long at $136 since I believe the US private credit market will be gutted in a recession that is now inevitable in Q3, the reason why I went long up the wazoo on TLT at 84 as I expect JayPo to capitulate on rate cuts at the September FOMC. I want to exit my BX long via a covered call strategy before July 4th, our Independence Day. I am pretty sure I will be able to buy BX below 100 when the macro wolf finally swallows Grandma Goldilocks. We saw this movie before in the autumn of 2008 ADVERTISEMENT Also published on Medium. Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
Arabian Business
an hour ago
- Arabian Business
Over 1.67million pilgrims performing Hajj in Saudi Arabia: GASTAT
1,673,230 pilgrims are performing Hajj 1446 AH in Saudi Arabia, according to the General Authority for Statistics (GASTAT). According to GASTAT, 1,506,576 pilgrims arrived from outside Saudi Arabia, while 166,654 pilgrims are from within the Kingdom, including both citizens and residents. Hajj 2025 by the numbers: Total pilgrims: 1,673,230 International pilgrims: 1,506,576 Domestic pilgrims (citizens and residents): 166,654 Male pilgrims: 877,841 Female pilgrims: 795,389 Hajj in Saudi Arabia How pilgrims arrived: Airports: 1,435,017 Land border crossings: 66,465 Seaports: 5,094 These figures were compiled using administrative records from the Ministry of Interior, part of a standardised statistical model that GASTAT has successfully implemented over the past five years. This method ensures high accuracy, reliability, and consistency in Hajj statistics reporting. As the Kingdom's official statistical authority, GASTAT is the exclusive provider of official statistics in Saudi Arabia and is entrusted with overseeing all national statistical activities, including technical supervision, conducting field surveys and research, data analysis, and managing the documentation, preservation, and tabulation of statistical information across all sectors of life in the Kingdom.
