Latest news with #DHAMInvestments
Zawya
19-05-2025
- Business
- Zawya
Dubai Holding upsizes Dubai Residential REIT IPO; to raise up to $584mln
Dubai Holding, which is seeking to IPO its subsidiary Dubai Residential REIT, has increased the size of the offering to 15% of the entity's capital from the previous 12.5% on the back of strong demand. The offering is now expected to raise between AED 2.08 billion ($568 million) and AED 2.14 billion ($584 million) based on the price range of AED 1.07 to AED 1.10 per unit. This implies a market capitalisation at listing of between AED 13.9 billion and AED 14.3 billion. With the upsizing, the tranche offered to institutional investors, is increased from 1,462,500,000 units to 1,787,500,000 units. The size of the retail tranche remains unchanged. Upon listing, DHAM REIT Management LLC DHAM Investments LLC, a subsidiary of Dubai Holding, will continue to own a majority 85% stake in the REIT. Proceeds from the sale of up to 243,750,000 units will be allocated to xCube LLC to conduct stabilisation transactions on the DFM following the listing, a statement said. Dubai Holding, the investment conglomerate owned by the emirate's ruler, is one of the largest landowners and property developers in the UAE. The units are expected to begin trading on 28 May. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
13-05-2025
- Business
- Zawya
Dubai Holding aims to raise up to $487mln for its residential REIT IPO
Dubai Holding is looking to raise up to 1.79 billion UAE dirhams ($487 million) from its residential real estate investment trust IPO, the first offering for the emirate in 2025. DHAM Investments, a subsidiary of Dubai Holding, and the current sole unitholder of the REIT is selling the units. It will offer 1.62 billion units, representing 12.5% of issued unit capital. The price range has been set between AED 1.07 and AED 1.10 per unit, implying a market capitalisation between AED 13.9 billion and AED 14.3 billion for the investment conglomerate. The offering subscription period starts today, 13 May 2025, and closes on 20 May 2025. The final offer price is expected to be announced on 21 May 2025. There is an option to amend the size of the offering at any time prior to the end of the subscription period. The nearly $500 million offering was the first global IPO of such magnitude since the April 2 US Liberation Day that set in motion a cycle of economic turbulence across the globe, JPMorgan's Managing Director and Co-Head of Equity Capital Markets, International for EMEA and APAC, Aloke Gupte, told Zawya earlier. Dubai Holding said the REIT expects to distribute at least AED 1,100 million in dividends for 2025, rising to 80% of profit before fair value changes in investment property by 2026. The price range implies a 2025 gross dividend yield of 7.9% at the low end and 7.7% at the high end. The two-tranche REIT includes a 10% retail offering, representing 162.5 million units, while the second tranche comprises the institutional offering, which is allocated 90%, and is open to qualified institutional investors. The REIT is expected to list on the Dubai Financial Market (DFM) on 28 May 2025. Citigroup Global Markets Limited, Emirates NBD Capital, and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Joint Bookrunners. Emirates NBD Bank 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 are acting as joint bookrunners for the offering. Dubai Residential REIT is the GCC's first listed residential leasing-focused REIT and manages 35,700 residential units across Dubai. (Writing by Bindu Rai, editing by Seban Scaria)
