Sign in
Dubai Holding is exploring plans to separately list its commercial and residential property units on the DFM next year, Bloomberg reports, citing people familiar with the matter. The state-run investment firm — managing assets worth AED 265 bn — is considering bundling its malls and commercial assets into a separate entity for a potential listing, while the residential units could be packaged into a real estate investment trust, Bloomberg reported previously.
REMEMBER- The firm is already working on creating a REIT for its residential properties. Dubai Holding reportedly tapped Citigroup, HSBC Holdings, and Emirates NBD Capital for the potential offering last month in a bid to capitalize on Dubai’s real estate boom.
Background: Dubai’s government-backed real estate firms Nakheel and Meydan merged into one entity held by Dubai Holding in March. Dubai Holding used an AED 30 bn loan to refinance the debts of the two developers.
What do we know? The residential REIT is expected to debut on the Dubai bourse in early 2025, followed by the commercial entity, the sources said. Discussions are still underway, with the final structure, timing, and valuations yet to be agreed upon.
ADVISORS- Emirates NBD Capital, Morgan Stanley, and Citigroup are advising on the residential REIT. Emirates NBD is also advising on the commercial transaction, alongside HSBC and JPMorgan.
THE DFM PIPELINE AT A GLANCE-
- Delivery Hero’s Middle East arm Talabat is set to debut on the DFM in December, after seeing its orderbook fully covered within minutes of opening;
- Construction firm Alec tapped advisors for a planned IPO;
- Amanat Holdings is looking to list its education and healthcare units, with reports that its healthcare unit could raise around USD 200 mn this year;
- Hospitality group Five Holdings and Dubai-based platform Dubizzle Group also tapped advisors for a potential IPO next year;
- Shisha producer Advanced Inhalation Rituals is also eyeing an IPO.
