An investment conglomerate owned by Dubai’s ruler is weighing plans to list the commercial and residential units of its property portfolio separately in an effort to harness the city’s real estate boom.
Dubai Holding is considering bundling its malls and other commercial assets into an entity that may be listed, according to people familiar with the matter. It’s also working on packaging its residential properties into a real estate investment trust, Bloomberg News reported last month.
The residential property trust is expected to be listed on the emirate’s bourse early next year, followed by the commercial entity, the people said, asking not to be identified as the information is private.
Dubai Holding is one of the city’s principal investment vehicles with assets of 265bn dirhams ($72bn), ranging from luxury hotels to theme parks. It recently rebranded its residential portfolio of 40,000 homes, after taking control of state-backed developers Nakheel and Meydan.
Discussions are ongoing and no final decisions have been taken on the structure, timing and valuations, the people said. Emirates NBD Capital is arranging the residential REIT along with Morgan Stanley and Citigroup Inc, while the Emirati lender is working with HSBC Holdings Plc and JPMorgan Chase & Co on the commercial deal, according to the people.
Morgan Stanley, Citi and HSBC spokespeople declined to comment. Representatives for Dubai Holding, Emirates NBD and JPMorgan didn’t respond to requests for comment. The deliberations come amid a boom in Dubai’s property market driven by the influx of millionaires, financial professionals and business leaders flocking to the emirate, lured by its low taxes and friendly visa regime. Home values in the city have risen for 17 straight quarters and office leasing activity continues to surge.
The listings will further Dubai’s attempts to deepen its capital markets. The emirate has already sold shares in multiple state-owned firms in the past couple of years. Private companies have also joined in. High-end supermarket chain Spinneys 1961 Holding Plc listed in May, while Delivery Hero’s Middle Eastern unit is planning an IPO before the end of the year.
A general view of Dubai. Dubai Holding is one of the city’s principal investment vehicles with assets of 265bn dirhams (2bn), ranging from luxury hotels to theme parks.
