Dubai Holding seeks to raise up to $487 million through listing of residential REIT

Dubai Holding, an investment conglomerate owned by the emirate's ruler, is seeking to raise up to 1.79 billion dirhams ($487 million) through the initial public offering (IPO) of its residential real estate investment trust (REIT) launched on May 13, Reuters reported.

Despite a robust pipeline of potential listings, Dubai Residential REIT will be the first listing in the emirate after Talabat in December, and the second in the United Arab Emirates this year. Talabat Holding Plc, one of the largest food delivery companies in the Middle East, has raised $2 billion in the UAE's largest initial public offering since 2024.

One of the UAE's largest landowners and real estate developers, Dubai Holding is offering a 12.5% stake in Dubai Residential REIT at a price range of 1.07 to 1.10 dirhams per share. This price range values the REIT at no more than $3.9 billion.

According to Reuters, Dubai Holding is expected to distribute at least 1.1 billion dirhams in dividends for 2025.

Dubai, the Gulf's business and tourism hub, has seen a post-pandemic real estate boom, fueled by foreign investment and the government's housing reforms.

The government has made significant efforts to reduce debt, strengthen real estate regulations and merge major state-owned real estate firms, with the aim of avoiding the pitfalls of previous boom-bust cycles in the sector.

Dubai Holding's portfolio also includes Nakheel, the developer behind the emirate's famous palm-shaped islands.

The subscription period for the REIT's institutional IPO will end on May 20, according to the company's announcement, and trading is expected to begin around May 28, Reuters notes.

Citi, Emirates NBD and Morgan Stanley are joint global coordinators for the IPO.

The Gulf region has not been immune to market volatility and rising geopolitical tensions that have affected global IPO activity this year, the source said.