Dubai: Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC, has announced plans to launch an initial public offering (IPO) for Dubai Residential REIT, which will list its units on the Dubai Financial Market (DFM).
According to Emirates News Agency, Dubai Residential REIT is set to become the GCC’s first pure-play listed residential leasing-focused REIT, and it is anticipated to be the region’s largest listed REIT with a gross asset value of AED21.63 billion. This valuation is nearly double that of the combined gross asset value of the five largest REITs in the GCC.
The IPO will offer 1,625,000,000 units, representing 12.5 percent of Dubai Residential REIT’s issued unit capital. DHAM Investments LLC, a Dubai Holding subsidiary, is the sole unitholder and selling unitholder of the REIT. The offering consists of two tranches, with the first tranche allocated 10 percent of the offer units and the second tranche receiving 90 percent.
The subscription period for the offering is set from 13th May 2025 to 20th May 2025, with the admission of units for trading on the DFM expected around 28th May 2025. The REIT has been confirmed by the Shariah Supervision Committee to be compliant with Shariah principles.
Dubai Residential REIT plans to implement a semi-annual dividend distribution policy, with payments scheduled for April and September, beginning in September 2025. The initial two dividend payments are expected to either total AED1,100 million or constitute 80 percent of the profit before changes in the fair value of investment properties, contingent upon Board approval.
The REIT manages a portfolio of 21 residential communities across Dubai, consisting of over 35,700 residential units – 95 percent of which are apartments. The portfolio achieved an average occupancy rate of over 96.8 percent last year, with a tenant retention rate of 87 percent.
Amit Kaushal, Group CEO of Dubai Holding, highlighted the successful integration of Nakheel and Meydan’s residential portfolios under Dubai Holding last year, enhancing Dubai Residential’s status as a major residential leasing platform. The IPO offers investors the chance to participate in this growth alongside opportunities within the Dubai Holding ecosystem.
Malek Al Malek, Group CEO of Dubai Holding Asset Management, reported that the fund achieved AED1.8 billion in revenues in 2024, with an adjusted operating profit of AED1.3 billion. He noted Dubai’s real estate market is experiencing positive changes supported by population growth and government policies that encourage investment.
Al Malek emphasized the fund’s clear expansion strategy, which includes developing existing communities and acquiring new assets. Future asset listings are under evaluation, with decisions based on sector readiness.
Ahmed Al Suwaidi, Managing Director of DHAM REIT Management LLC, stated the REIT offers investors an accessible opportunity to invest in high-quality, income-generating residential properties in Dubai without the complexities of direct ownership.