Latest news with #DHAMREITManagementLLC
Hi Dubai
21-05-2025
- Business
- Hi Dubai
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
Dubai Eye
05-05-2025
- Business
- Dubai Eye
Dubai Holding announces IPO for Dubai Residential REIT
Dubai Holding is preparing an initial public offering (IPO) of its residential real-estate investment trust (REIT) on the Dubai Financial Market (DFM). A total of 1.625 billion shares will be on offer, representing 12.5 per cent of Dubai Residential REIT's issued unit capital. It is expected to start trading on or around May 28 after the final price offer announcement on May 21. The offering subscription period is expected to run from May 13 to 20. Dubai residential REIT is a Shariah-compliant investment fund that manages 35,700 residential units across different key parts of Dubai. DHAM Investments, a subsidiary of Dubai Holding, is currently the sole unitholder of Dubai Residential REIT. "This IPO presents investors with a unique opportunity to participate in this success story while benefiting from the wider capabilities and opportunities within the broader Dubai Holding ecosystem," said Amit Kaushal, Group CEO of Dubai Holding. "The integration of Nakheel and Meydan's residential portfolios under Dubai Holding last year was a significant milestone in Dubai Residential's journey that enhanced its status as one of the region's largest residential leasing platforms." The IPO "paves the way for a broader segment of investors to participate in Dubai's dynamic real estate growth story," highlighted Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC. 'The Dubai Residential REIT provides investors with a straightforward and economical path to invest in premier, income-generating residential real estate assets across the city, without the complexities of direct property ownership and management," added Ahmed Al Suwaidi, managing director of DHAM REIT Management LLC. Dubai Residential REIT is expected to be the Gulf Cooperation Council (GCC) region's largest listed REIT, with a gross asset value (GAV) of 21.63 billion dirhams (US$5.89 billion), Dubai Holding said in a statement.
