Dubai Holding has announced an increase in the size of its Dubai Residential REIT initial public offering (IPO) from 12.5% to 15% of the REIT’s issued capital. The move, approved by the UAE Securities and Commodities Authority, follows strong investor interest and over-subscription across all offering tranches.
The IPO, which opened on May 13 and closes on May 20, is priced between AED 1.07 and AED 1.10 per unit. With the expanded offering, Dubai Holding now expects to raise between AED 2.087 billion and AED 2.145 billion (approximately $568 million to $584 million), valuing the REIT at around AED 13.9–14.3 billion ($3.8–3.9 billion).
The offering includes two tranches: 162.5 million units remain allocated for UAE retail investors, while the institutional tranche has increased to 1.7875 billion units.
Managed by DHAM REIT Management LLC, the Shariah-compliant REIT includes over 35,000 residential units across 21 communities in Dubai, including City Walk, Bluewaters, and Remraam. The REIT plans to begin semi-annual dividend distributions starting September 2025, targeting a gross yield of 7.7%–7.9%.
Trading on the Dubai Financial Market is expected to begin around May 28, 2025.
