Dubai Holding has set a goal to generate up to AED1.8 billion ($490 million) through its residential real estate investment trust (REIT) public offering.

This month, the investment group owned by Sheikh Mohammed bin Rashid Al Maktoum, the ruling leader of the emirate, revealed plans to float 12.5% of its Dubai Residential REIT, which equates to 1.63 billion units, on the Dubai Financial Market (DFM).

The proposed pricing for the units has been established between AED1.07 and AED1.10 each, suggesting a total market capitalization ranging from AED13.9 billion to AED14.3 billion, as stated by Dubai Holding on Tuesday.

Subscription for both retail and institutional investors began today and will close on May 20. The final offer price, decided through a book-building process, is expected to be announced on May 21.

REITs are created to provide smaller investors with access to large-scale property investments.

The trading of the units on the DFM is anticipated to commence around May 28.

Citigroup, Emirates NBD, and Morgan Stanley are partnering as joint global coordinators and bookrunners for this IPO.

The Dubai Residential REIT oversees a portfolio consisting of 35,700 residential units valued at AED21 billion ($5.7 billion), including major developments such as City Walk, Bluewaters, Meydan Heights, and International City.

For the fiscal year 2024, it reported total revenues of AED1.8 billion.

The REIT is projected to distribute a minimum of AED1.1 billion in dividends for the year 2025.