Raising over AED2bn
Largest GCC listed REIT
The order book for Dubai Holding’s first residential real estate investment trust (REIT) hit AED56 billion ($15 billion), with the initial public offering more than 26 times oversubscribed.
The final offer price was set at the top end of the price range at AED1.10 per unit, enabling the company to raise just over AED2 billion.
The investment conglomerate claimed the REIT is the “largest listed in the GCC”.
The market capitalisation upon listing will stand at AED14.3 billion, offering a gross dividend yield of 7.7 percent for 2025.
This week, the REIT’s offering size was increased to 15 percent of the issued capital from the previous 12.5 percent.
Retail investors will be informed of the unit allocation on May 26, with refunds due to commence on the same date.
Initially, Dubai Holding was going to raise up to AED1.8 billion. Upon listing on the Dubai Financial Market (DFM), Dham Investments, a subsidiary of Dubai Holding, will continue to own a majority 85 percent stake in the REIT.
The units are expected to start trading on the DFM around May 28.
The REIT manages a portfolio of 35,700 residential units worth AED21 billion ($5.7 billion), across prime developments including City Walk, Bluewaters, Meydan Heights and International City.
The REIT reported total revenues of AED1.8 billion in 2024. It plans to adopt a semi-annual dividend policy, making payments in April and September each year, starting in September 2025.
The REIT will pay AED1.1 billion in dividends this year.
