Dubai Holding Sets IPO Price for Dubai Residential REIT at AED 1.10, Raising AED 2.1 Billion to Become GCC's Largest Listed REIT
Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC (the 'Fund Manager'), today announces the successful completion of the book building and subscription process for the initial public offering ('IPO' or the 'Offering') of Dubai Residential REIT on the Dubai Financial Market (the 'DFM') and has set the final offer price at AED 1.10 per Offer Unit.
This implies a market capitalisation upon listing of AED 14.3 billion (USD 3.9 billion) and a gross dividend yield of 7.7% for 2025. The Offering attracted strong demand across both institutional and UAE retail tranches, prompting the Fund Manager to increase the size of the Offering from 12.5% to 15.0% of Dubai Residential REIT's total issued unit capital. The total gross demand reached over AED 56 billion (USD 15 billion), 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 2,145 million (USD 584 million) 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 (one billion nine hundred and fifty million) Units, representing 15.0% of Dubai Residential REIT's issued unit capital, offered by DHAM Investments LLC (the 'Selling Unitholder'), a subsidiary of Dubai Holding, and the current sole unitholder of the REIT. Upon listing, the Selling Unitholder will continue to own a majority 85% stake in Dubai Residential REIT.
Investors who subscribed through the UAE Retail Offering (First Tranche) will receive an SMS confirmation of their respective allocation on 26 May 2025, with refunds due to commence from the same date.
The completion of the Offering and admission of Units to trading on the DFM ('Admission') is expected to take place on or around 28 May 2025, under the ticker symbol "DUBAIRESI" and ISIN "AEE01657D252", subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on DFM.
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) AED 1,100 million; and (ii) an amount equal to 80% of profit for the period before changes in fair value of investment property, in respect of its financial results for the year ending 31 December 2025. For the financial results for the year ending 31 December 2026 and thereafter, Dubai Residential REIT intends to distribute at least 80% of profit for the period before changes in fair value of investment property for each accounting period. All dividend distributions remain subject to the approval of Dubai Residential REIT's board of directors and other provisions of the UAE prospectus.
Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Joint Bookrunners (the "Joint Global Coordinators"). Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited acting in conjunction with Arqaam Securities LLC, and First Abu Dhabi Bank PJSC are acting as joint bookrunners (together with the Joint Global Coordinators, the "Banks") for the Offering.
Pursuant to an underwriting agreement entered into between Dubai Residential REIT, the Selling Unitholder, the Fund Manager and the Banks (the "Underwriting Agreement"), the Selling Unitholder will be subject to a lock-up (in connection with the Units) from the date of the Underwriting Agreement up to 180 days after Admission, subject to certain customary carveouts and consent by the Joint Global Coordinators. Dubai Residential REIT will also be subject to a lock-up for the same duration.
In connection with the Offering, the Selling Unitholder will allocate proceeds from the sale of up to 243,750,000 Offer Units to xCube LLC, a DFM-authorised price stabilisation manager appointed by the Fund Manager. These proceeds may be used, in accordance with applicable laws and the DFM Trading Rules, to conduct stabilisation transactions on the DFM. The Banks and their respective directors, officers, employees, agents, and affiliates will not be involved in, responsible for, or benefit from any such transactions, which will be carried out solely by xCube LLC.
Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank LLC, Commercial Bank of Dubai, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, and Mashreq Bank PSC have also been appointed as Receiving Banks.
For more information about the Offering, please visit: http://ipo.dubairesidential.ae/
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Bawaba
a day ago
- Al Bawaba
In Line with Its Vision to 'Lead the Future', Orange Jordan Sponsors GWTS 2025 Summit
Orange Jordan sponsored the Global Women in Tech and Digital Transformation Summit (GWTS 2025), held under the patronage of H.E. Minister of Digital Economy and Entrepreneurship, Eng. Sami Smeirat, and attended by prominent leaders, experts, and pioneers from Jordan and the region. The sponsorship highlights Orange Jordan's commitment to its 'Lead the Future' vision and its sustainable strategy focused on digital inclusion, education, and entrepreneurship, driving innovation and a more inclusive digital future. The CEO of Orange Money, Eng. Heba Al-Sharif, highlighted Orange Jordan's role in offering innovative digital solutions that enhance financial inclusion and support women in tech. She emphasized the company's commitment to empowering women through accessible and secure digital financial services. Orange Jordan continues to harness the power of technology to empower diverse segments of society through forward-looking digital initiatives and impactful community programs. With a strong focus on youth, the company is committed to using its digital leadership to drive sustainable, positive change across the Jordanian community. It is worth noting that the summit serves as an international platform dedicated to empowering women in the technology sector and strengthening their presence and impact in fields such as AI, fintech, and entrepreneurship. By fostering knowledge exchange and building meaningful networks, the summit plays a vital role in promoting diversity across the global tech industry.
Al Bawaba
a day ago
- Al Bawaba
The Imf and Auc Wrap Up First Mena Economic Research Conference: Steering Macroeconomic and Structural Policies in a Shifting Global Economic Landscape
Following two days of high-level dialogue and expert analysis, the inaugural IMF MENA Economic Annual Research Conference co-organized by the International Monetary Fund (IMF) and the American University in Cairo (AUC), concluded with a strong call for coordinated, evidence-based policy responses to the region's old and new pressing economic on May 18–19, 2025, the conference served as a critical platform for advancing rigorous research tailored to the realities of the Middle East and North Africa. It brought together global policymakers, academics, government officials and thought leaders to bridge the discussion on global economic issues with regional realities. The event marked a first-of-its-kind collaboration between the IMF and a leading University in the region, reflecting a shared commitment to deepening the link between academic research and policy development. Jihad Azour, director of the IMF's Middle East and Central Asia Department, noted that that trade tensions and increasing uncertainty affecting the global economy, alongside ongoing regional conflicts and climate risks, are creating new layers of complexities for MENA policymakers. Azour called for building a regional platform for dialogue and exchange of ideas that connects MENA to world-class research centers to provide reliable analysis and develop workable and innovative policy responses to old and new economic issues facing the region. 'We are deeply grateful to President Ahmad Dallal and AUC for their commitment to fostering dialogue, research, and policy innovation in the region.'AUC President Ahmad Dallal highlighted the event's role as a vital platform in fostering collaboration between governments, academia and the private sector. "This is about generating ideas that are globally informed but deeply rooted in the realities of our region," he affirmed that this type of multi-stakeholder engagement is at the heart of AUC's mission and reflects the University's commitment to research, education, and open dialogue as drivers of stability, resilience, and inclusive the theme 'Steering Macroeconomic and Structural Policies in a Shifting Global Economic Landscape,' discussions centered on four pivotal issues shaping the future of the MENA region and the global economy:• Fiscal Policy: With public debt at historic highs, experts stressed the importance of rebuilding fiscal buffers while tackling social inequalities, aging populations, and climate pressures. Proposals included reforms in fiscal frameworks and measures to mobilize revenues, including through multinational taxation and more progressive tax systems.• Monetary Policy: Participants reflected on the lessons of recent inflationary shocks, emphasizing the need for more preemptive and well-communicated policy responses to global shocks and sector-specific disruptions, particularly for emerging markets.• Industrial Policy: Speakers examined the renewed interest in industrial policy as a tool to drive inclusive growth, innovation, and climate resilience. The discussion highlighted the need to balance vertical strategies with horizontal reforms that promote private investment, trade integration, and productivity.• Green Transition and AI: The intersection of climate action and digital transformation sparked debate about their potential to reshape labor markets. Recommendations included investing in human capital, developing targeted safety nets, and aligning policy tools to support job creation in low-emission the sessions, there was a clear consensus that the MENA region's economic resilience depends on institutional reforms, cross-border cooperation, and investment in skills and innovation. Participants also underscored the importance of embedding policy in local realities—an approach that both the IMF and AUC pledged to champion moving addition to prominent global and regional academics, as well as economists and government officials from across the region, and representatives of international and regional organizations, the conference brought together policymakers, including Rania El Mashat, minister of planning, economic development and international cooperation, Egypt; Youssef Boutros-Ghali, member of the Specialized Council for Economic Development, Egypt; Mahmoud Mohieldin, United Nations special envoy on financing the 2030 Sustainable Development Agenda; and Martin Galstyan, governor of the Central Bank of Armenia. As Nigel Clarke, IMF deputy managing director concluded, "This conference is a milestone demonstrating the IMF's commitment to deepening engagement with the research and academic community, as we strive to ensure that the IMF support is not only responsive to the needs of member countries, but also built on rigorous tested analytics and importantly, it's aligned with local realities. Through this kind of multi-stakeholder dialogue, we aim to better understand how all our expertise and resources can be directed towards the most pressing challenges of the region.'
Al Bawaba
a day ago
- Al Bawaba
Audit and Accountability in Focus at AUB Panel on the Chehab Era and the Path Forward
The American University of Beirut (AUB) hosted a timely and thought-provoking panel discussion titled Audit and Accountability – The Chehab Era and the Path Forward, organized by the Fouad Chehab Foundation (FCF), and the AUB Good Governance and Citizenship Observatory (GGCO) housed at the Asfari Institute for Civil Society and Citizenship. Held on AUB's campus, the event brought together leading legal and governance experts to examine the institutions established under former President Fouad Chehab—bodies tasked with supervising public administration and enforcing accountability—and to explore their relevance to Lebanon's current challenges in governance and state event was moderated by Attorney of Law Amine Bachir and featured three distinguished panelists: Judge Georges Attieh, president of the Central Inspection Board; Court of Accounts Judge Elie Maalouf, professor at La Sagesse University; and Judge Rana Akoum, head of the Enforcement Court in Simon Kachar, founding and current director of GGCO, welcomed the panelists and attendees, and spoke about the timeliness of the panel and the growing momentum in Lebanon for governance and institutional reform. He noted that the collaboration with the Fouad Chehab Foundation reflects a shared commitment to linking the lessons of the past with the reform efforts of his recorded video message opening the event, AUB President Dr. Fadlo R. Khuri praised Chehab as 'one of the most important presidents Lebanon has known,' highlighting his commitment to the development of robust state institutions. 'We see today not only an opportunity to study the accomplishments, merits, and difficulties of the Chehab era,' Khuri stated, 'but also to apply what we learn from these studies to Lebanon's current reality.' He added that we must work toward building 'a state of institutions at a time when the Lebanese state is expressing its will and determination to reassert its authority across the country.'Khuri noted that the Chehab era was defined by the application of law and respect for institutions, a principle Lebanon has struggled to uphold since the onset of civil war, stating that enforcing the law and upholding institutional will are capabilities essential for restoring confidence in governance and rebuilding a viable of the Fouad Chehab Foundation Adel Hamiyeh reflected on the enduring values behind the foundation's work. He noted that President Chehab built institutions that were not only administrative and financial, but also social, cultural, and developmental in nature. Hamiyeh said, 'We decided to organize a series of panel discussions on the Chehabist experience, addressing topics such as governance, and involving universities, with the aim of introducing the Chehabist message to the younger generation—especially during this period marked by the optimism that accompanied the election of President Joseph Aoun, his delivery of the oath of office, and the subsequent formation of a distinguished government known for its competence and its promising ministerial statement. This has given us hope that this new era may resemble that of President Fouad Chehab in terms of restoring the authority and institutions of the state and returning to a natural foreign policy."The discussion unfolded in three parts: lessons learned from the Chehab era, the current state of institutional paralysis, and potential paths forward. The panelists discussed the rationale behind President Chehab's establishment of key institutions such as the Central Inspection, the Audit Bureau, and the Disciplinary Council. These bodies were conceived as independent mechanisms to promote transparency, discipline, and ethical governance across public administration. The discussion highlighted how these institutions once played a pivotal role in instilling accountability, protecting public resources, and professionalizing the civil service. The discussion also revisited the structural foundations that allowed these institutions to function with autonomy during the Chehab era, and considered the leadership decisions that helped insulate them from political conversation then moved to the contemporary state of these institutions, as the panel examined the range of factors that have contributed to their current dysfunction—including political encroachment, legal ambiguities, and insufficient staffing and funding. The panelists acknowledged that many of these bodies now face significant operational challenges, preventing them from fulfilling their original mandates. Despite this, there was recognition that these institutions still hold potential if revitalized with the appropriate structural and legal ahead, panelists reflected on potential reform pathways. They explored ideas such as enacting legal safeguards to enhance institutional independence, leveraging digital tools to modernize audit and inspection functions, and fostering closer collaboration between oversight bodies, the judiciary, and civil society actors. The discussion emphasized the importance of reestablishing credibility through transparent practices and rebuilding public confidence in Lebanon's governance the discussion, panelists revisited the core principles of the Chehab era—discipline, transparency, and institutional accountability—as potential foundations for Lebanon's future reform efforts. While acknowledging the serious structural and political challenges that remain, the conversation underscored the importance of rebuilding credible and independent institutions capable of advancing good governance and restoring public trust. The session concluded with an engaging Q&A, during which attendees posed questions and shared reflections, enriching the conversation around the future of institutional reform in Lebanon.
