Clifford Chance

Clifford Chance advises underwriters on US$584 million IPO and listing of Dubai Residential REIT on the Dubai Financial Market

Global law firm Clifford Chance has advised the underwriters on the initial public offering (IPO) and listing on the Dubai Financial Market of Dubai Residential REIT, a Shariah-compliant income generating closed-ended real estate investment fund managed by DHAM REIT Management LLC, a subsidiary of Dubai Holding.

The offering raised gross proceeds of AED 2.145 billion (approximately US$584 million), implying a market capitalisation on listing of AED 14.3 billion (approximately US$3.9 billion) - making this one of the largest real estate investment trust IPOs in the GCC to date. The offering comprised a total of 1,950,000,000 units, representing 15% of Dubai Residential REIT's issued unit capital, offered by DHAM Investments LLC, a subsidiary of Dubai Holding.

Dubai Residential REIT becomes the first pure-play listed residential leasing REIT in the GCC, and, at the time of listing, the largest listed REIT in the region, with a gross asset value of AED 21.63 billion (approximately US$5.89 billion) and a portfolio of 35,700 residential units strategically located across Dubai.

The underwriters were Citigroup Global Markets Limited, Emirates NBD Capital PSC, Morgan Stanley & Co. International plc, Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited (acting in conjunction with Arqaam Securities LLC) and First Abu Dhabi Bank PJSC.

The Clifford Chance cross-border team was led by partner Omar Rashid (Dubai), with support from partners Christopher Roe (London), Drew Rundus (London), and Sahel Mughal (Riyadh).

The core transaction team was led by senior associate Massimiliano Valli (Dubai), with support from senior associates Anjaneya Das (London), Jake DuCharme (London/New York), and Rida Jamal (Riyadh) and associates Ismaila Ngum (Dubai), Radhika Sharma (London) and Garo Yaghsezian (London).

Clifford Chance has one of the most experienced and active ECM practices in the Middle East. The firm continues to advise on some of the region’s most high-profile listings, including recent roles on the IPOs of Lulu Retail Holdings, Dubai Taxi Company, Investcorp Capital and Americana Restaurants.