Dubai Holding Group announced today, Tuesday, its intention to raise approximately AED 1.79 billion ($487 million) through an initial public offering (IPO) of the Dubai Residential REIT on the Dubai Financial Market.
Main takeaways:
- IPO Launch: Dubai Holding aims to raise $487M via Dubai Residential REIT IPO on DFM (May 13–20, 2025).
- Largest Residential REIT: Expected to be the biggest listed residential REIT in the GCC with AED 21.6B in assets.
- Two Tranches: 10% for retail (min. 2,000 units), 90% for qualified investors.
The subscription process begins today, Tuesday, May 13, 2025, for one of the largest real estate investment trusts (REITs) specializing in owning and operating residential properties in Dubai.
The fund is offering 1.625 billion units for subscription, representing 12.5% of its issued capital.
The price range for the offering has been set between AED 1.07 and AED 1.10 per unit, reflecting a total offering value between AED 1.739 billion ($473 million) and AED 1.788 billion ($487 million). Upon listing, the market capitalization of the fund is expected to range between AED 13.9 billion ($3.8 billion) and AED 14.3 billion ($3.9 billion).
The offering is divided into two tranches. The first tranche is allocated to individuals and eligible entities holding a National Investor Number on the Dubai Financial Market, representing 10% of the total offering (162.5 million units). Each subscriber in this tranche will be guaranteed a minimum allocation of 2,000 units.
The second tranche is targeted at qualified professional investors outside the United States and accounts for 90% of the offering (1.4625 billion units).
Investors in both tranches can subscribe to the offering from today, May 13, 2025, until May 20, 2025. The final offering price will be determined through a book-building process conducted in accordance with the instructions of the joint global coordinators, the fund manager, and the selling unitholder. The final price is expected to be announced on May 21, 2025.
The subscription period is scheduled to close on Tuesday, May 20, 2025, with the final offering price to be announced on May 21, 2025.
According to estimates, Dubai Residential REIT is expected to become the largest listed real estate investment trust in the Gulf Cooperation Council (GCC) region focused on the residential leasing sector, with total assets valued at AED 21.6 billion. This surpasses the combined value of the five largest listed REITs in the region.
The fund benefits from the residential asset ecosystem of Dubai Holding Group, a leading investment company that owns one of the largest land banks in the Emirate of Dubai, providing it with a strong foundation for growth and expansion in the residential real estate sector.
