Linklaters advises Dubai Holding on the landmark REIT IPO of Dubai Residential REIT
Linklaters has advised Dubai Holding, a diversified global investment company, on the initial public offering (IPO) of Dubai Residential REIT on the Dubai Financial Market (DFM), raising AED 2.1bn (US$572mn) to become the GCC’s largest listed REIT.
Dubai Residential REIT is a Shariah-compliant income-generating closed-ended real estate investment fund and one of the largest owners and operators of residential real estate in Dubai, managing 35,700 residential units strategically positioned in key catchment areas across Dubai and spread across multiple locations, property types and price segments.
The IPO, which is the first REIT listing to take place under the Securities and Commodities Authority’s new fund regulations, represents 15% of Dubai Residential REIT’s issued unit capital, upsizing from the previously announced 12.5% driven by strong demand from domestic and international investors. The IPO was significantly oversubscribed by local, regional, and international investors, with total gross demand of over AED 56bn (US$15bn), implying an oversubscription level of over 26 times in aggregate. At AED 1.10 per unit, the IPO has been priced at the top of the price range with an implied market capitalisation of AED 14.3bn (US$3.9bn). Upon listing, DHAM Investments LLC (DHAM), a wholly-owned subsidiary of Dubai Holding, will retain the remaining 85% stake.
The Linklaters team was led by Middle East Managing Partner Scott Campbell, Global Chair of Equities Jason Manketo and Dubai corporate partner Patrick Sutton-Mattocks.
Linklaters’ Global Chair of Equities Jason Manketo commented:
“We are honoured to have had the opportunity to advise Dubai Holding on this landmark IPO. The overwhelming demand and successful upsizing highlights Dubai’s dynamic real estate market and continued investor confidence in the UAE. The transaction also reflects Linklaters’ commitment to delivering innovative and impactful solutions for our clients. Congratulations to everyone involved – we look forward to collaborating on future opportunities.”
Linklaters corporate partner Patrick Sutton-Mattocks added,
“We are immensely proud to have supported Dubai Holding on this milestone IPO. It is a pioneering transaction that highlights the positive outlook for the real estate investment landscape in the UAE and the wider GCC region, and the scale of the offering underscores the continuing global investor interest in Dubai’s residential property sector. As the expansion of the UAE capital markets continues at pace, we look forward to continuing to bring innovative products to market and to guiding our clients through landmark moments in their histories.”
