Dubai Holding intends to float Dubai residential REIT on DFM

Staff Reporter, Gulf Today

Dubai Holding, through its wholly owned subsidiary DHAM REIT Management (the “Fund Manager”), on Monday announced its intention to launch an initial public offering (“IPO” or the “Offering”) for Dubai Residential REIT, a Shariah-compliant income-generating closed-ended real estate investment fund under establishment and one of the largest owners and operators of residential real estate in Dubai (the “REIT”), to list its units for trading (the “Units”) on the Dubai Financial Market (“DFM”).

Dubai Residential REIT’s portfolio shall be managed by the Fund Manager pursuant to a fund management agreement between Dubai Residential REIT and the Fund Manager, leveraging its expertise to ensure optimised asset performance and stable returns. The Fund Manager’s role includes, but is not limited to, managing and operating the REIT’s residential assets leasing business, monitoring the financial status, key performance indicators and progress of Dubai Residential REIT’s business and portfolio investments (including procuring semi-annual valuation reports), preparing the REIT’s financial reports for publication and appointing and managing service providers for functions including, but not limited to, facility management and property management.

The REIT benefits from the broader residential ecosystem curated by Dubai Holding, a global investment leader with one of the largest land banks in the Emirate of Dubai.

DHAM Investments LLC (the “Selling Unitholder”), a subsidiary of Dubai Holding, is currently the sole unitholder of Dubai Residential REIT and is offering 1,625,000,000 (one billion six hundred and twenty-five million) Units in the Offering.

The Offering subscription period is expected to run from 13 May 2025 to 20 May 2025 (both days included).

Admission of Units to trading on the DFM (“Admission”) is anticipated on or around 28 May 2025.

The Fund Manager reserves the right to amend the size of the Offering at any time prior to the end of the subscription period in its sole discretion, subject to the applicable laws of the UAE and the approval of the SCA.

Amit Kaushal, Group Chief Executive Officer of Dubai Holding, said: “As one of the cornerstones of Dubai Holding, Dubai Holding Asset Management’s residential leasing portfolio, Dubai Residential, has consistently delivered high-quality communities that meet the evolving needs of Dubai’s diverse population. 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. 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.

“As we prepare for the listing, we look forward to working alongside our Dubai Residential REIT stakeholders to further enhance our offerings and continue driving the growth of Dubai as a leading global hub for living and investment.”

Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC, commented on the announcement: “Our residential leasing journey spans from some of the earliest purpose-built developments over 20 years ago to an exceptional portfolio of properties today. This rich legacy, combined with a relentless commitment to quality, has solidified our role as a creator of diversified, connected communities, enabling us to capture the significant opportunities emerging from Dubai’s property market.

The decision to launch the IPO of Dubai Residential REIT marks a natural evolution in our story, offering investors a unique opportunity to participate in the GCC’s largest and first pure-play listed residential leasing-focused REIT. With a diversified portfolio valued at over Dhs 21 billion, this milestone enables us to expand our impact, deliver sustainable unitholder returns, and continue shaping the future of urban living in Dubai.

The launch of Dubai Residential REIT, featuring a portfolio comprising 35,700 residential units and serving more than 140,000 residents across 21 vibrant communities, marks a significant expansion of our investment offerings. This Offering paves the way for a broader segment of investors to participate in Dubai’s dynamic real estate growth story.” Ahmed Al Suwaidi, Managing Director of DHAM REIT Management LLC, said: “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. This opportunity is designed to yield regular dividends and offers the potential for capital growth, portfolio diversification, inflation hedging and the assurance of a Shariah-compliant investment framework.