Dubai Holding to Launch Real Estate Investment Trust (REIT)

According to a Bloomberg story today, Dubai Holding intends to establish a real estate investment trust (REIT) in order to profit from the emirate’s rising real estate market.

The report, citing people familiar with the situation, said that Citygroup Inc., HSBC Holdings PLC, and Emirates NBD Capital have been lined up for the trust offering.

Dubai Holding includes the developers Meraas and Dubai Properties. The group declared in March that Meydan, the owner of Dubai’s racecourse, and developer Nakheel would combine and become a part of the conglomerate.

The holding company also includes the hospitality group Jumeirah Hotels and & Resorts, which is the owner of the seven-star Burj Al Arab hotel in the city as well as several other upscale hotels in the Middle East, Asia, and Europe.

According to the report, the purpose of the move is to give investors access to high-quality income-generating assets, such as certain community developments that were recently transferred to Dubai Holding