The offer price range has been set between AED1.07 and AED1.10 per unit.
The offering consists of 1,625,000,000 units, representing 12.5 per cent of the REIT’s issued unit capital, being offered by DHAM Investments LLC, a subsidiary of Dubai Holding.
Dubai Residential REIT offering details
The total offering size is expected to be between AED1,739 million ($473 million) and AED1,788 million ($487 million), with an implied market capitalisation at listing of between AED13.9 billion ($3.8 billion) and AED14.3 billion ($3.9 billion).
The subscription process began on May 13, 2025, and will continue until May 20, 2025. The final offer price is expected to be announced on May 21, 2025, with trading on the DFM expected to commence on May 28, 2025 under the symbol “DUBAIRESI”.
The IPO consists of two tranches: the UAE Retail Offer, allocated 10 per cent of the units (162,500,000), and the Institutional Offering, allocated 90 per cent of the units (1,462,500,000).
Retail investors will be guaranteed a minimum allocation of 2,000 units, subject to conditions outlined in the prospectus.
Dubai Residential REIT is positioned as the GCC’s first pure-play listed residential leasing-focused REIT and is expected to be the region’s largest listed REIT at the time of listing, with a gross asset value of AED21.63 billion.
The REIT manages 35,700 residential units across Dubai, making it one of the largest residential real estate owners and operators in the emirate.
The portfolio is diversified across multiple locations, property types, and price segments.
Both the REIT and the offering have received Shariah compliance certification, with fatwas issued by the Shariah Supervision Committee of Dubai Residential REIT and the Internal Shariah Supervision Committee of Emirates NBD Bank PJSC.
The REIT plans to adopt a semi-annual dividend distribution policy, with payments in April and September each year, starting from September 2025.
For the first two dividend payments (September 2025 and April 2026), the REIT expects to distribute the higher of AED1,100 million or 80 per cent of profit for the period before changes in fair value of investment property for the year ending December 31, 2025.
The offer price range implies a gross dividend yield of 7.9 per cent at the bottom of the price range and 7.7 per cent at the top of the price range for the year ending December 31, 2025.
Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Joint Bookrunners, with Emirates NBD Bank PJSC serving as the Lead Receiving Bank.
The selling unitholder will be subject to a lock-up period of 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.
Additionally, 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, which may conduct stabilisation transactions on the DFM in accordance with applicable laws and DFM Trading Rules.
The key dates for the IPO include:
- Close of Book Building: May 20, 2025
- Final Offer Price Announcement: May 21, 2025
- Allocation of Offer Units to the First Tranche: May 26, 2025
- Refunds: May 26, 2025
- First Day of Trading: May 28, 2025
Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank, with 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 also appointed as Receiving Banks.
