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 supported by Julianna Halbeck, Kevin Stump, Jordan Badenko and Maxi Luisa Niefer