Dubai Residential REIT's IPO oversubscribed 26 times

Dham Reit Management, a subsidiary of Dubai Holding, on Wednesday announced the final price of its Dubai Residential REIT IPO at Dh1.1 per unit, becoming the largest listed REIT in the Gulf Cooperation Council (GCC) region.

The final offer price was set at the top end of the price range, enabling the company to raise Dh2.145 billion through the initial public offering (IPO). This implied a market capitalisation of Dh14.3 billion and a gross dividend yield of 7.7 per cent for 2025. 

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The offering attracted strong demand across institutional and UAE retail tranches, prompting the Fund Manager to increase the size of the offering from 12.5 per cent to 15.0 per cent. The total gross demand reached over Dh56 billion, resulting in an oversubscription of 26 times at the final offer price.

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The offering comprised a total of 1.950 billion units, representing 15.0 per cent of Dubai Residential REIT’s issued unit capital, offered by Dham Investments. Upon listing, the Selling Unitholder will continue to own a majority 85 per cent stake in Dubai Residential REIT. 

Investors who subscribed through the UAE retail offering will receive an SMS confirmation of their respective allocation on May 26, with refunds due to commence from the same date. The company will be listed on the Dubai Financial Market (DFM) on May 28. 

Amit Kaushal, Group CEO of Dubai Holding, said the significant demand for the IPO of Dubai Residential REIT from local and international investors is a powerful endorsement of the company’s residential leasing portfolio.

“This investor confidence speaks not only to the resilience of the UAE’s economic vision and Dubai’s long-term growth trajectory but also highlights the increasing depth, maturity and global appeal of its capital markets,” he said. 

“As we look ahead, our focus remains firmly on shaping the future of urban living in Dubai and contributing to the city’s continued evolution as a global hub for investment, innovation and high-quality living,” he added.

Malek Al Malek, Group CEO of Dubai Holding Asset Management and chairman of the Investment Committee of Dham Reit Management, said the strong investor demand signals a growing appetite for stable, income-generating assets in Dubai’s vibrant and mature real estate sector.

He added that Dubai Residential “has consistently demonstrated its ability to generate sustainable, long-term returns.”

• Dubai

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.