Abu Dhabi’s Lunate, Saudi Arabia's Olayan acquire 49% stake in Dubai’s ICD Brookfield Place
The tower is almost fully occupied and commands high rents
Dubai: Abu Dhabi investment firm Lunate and Saudi conglomerate Olayan have bought into the largest office tower in Dubai’s financial hub – ICD Brookfield - securing a slice of one of the world’s few upbeat commercial property markets.
Investment Corporation of Dubai (ICD) and Brookfield Corporation (Brookfield) announced Monday an agreement with Olayan Financing Company and Lunate for the sale of a 49 per cent stake in ICD Brookfield Place (ICDBP), located in the Dubai International Financial Centre (DIFC).
Upon completion, Lunate, through one of its funds, and Olayan Financing Company will each own a 24.5 per cent equity interest in ICDBP, said the companies in a statement. ICD and Brookfield will retain a combined 51 per cent equity interest, split equally between the two parties.
Lunate’s investment in ICD Brookfield Place is aligned with its long-term capital strategy and strengthens its real assets portfolio, said Lunate in a statement.
ICD Brookfield Place is home to major global financial institutions, law firms, and multinational corporations. It is over 98 per cent occupied at premium rents.
Khalid Al Bakhit, Chairman of ICD Brookfield, said, “In a very short time, ICD Brookfield Place has become a major landmark and the most coveted address in Dubai for businesses and leisure alike. We are delighted to welcome Lunate and Olayan as partners. This transaction underscores the trust and confidence in this incredible development and the innovation in Dubai’s real estate.”
Brookfield Properties, the real estate operating arm of Brookfield Corporation, will continue to manage the property.
Jad Ellawn, Managing Partner and Regional Head of the Middle East at Brookfield said, “This investment is a testament to the continued demand for premier office properties like ICD Brookfield Place and underscores the fact that capital continues to seek high-quality real estate globally.”
Olayan Financing Company (OFC) is a leading multinational enterprise with a diversified portfolio of over 32 companies and global investments that extend across Saudi Arabia, the wider Middle East, North Africa, Turkey, and India.
“Acquiring this significant stake in ICD Brookfield Place represents a strategic addition to our diverse portfolio. It showcases our commitment to investing in high-quality, sustainable real estate assets that align with our long-term view of value creation,” said Nabeel M. Al-Amudi, CEO of Olayan Financing Company.
Lunate is a new Abu Dhabi-based, partner-led, independent global alternative investment manager with over 160 employees and $105 billion of assets under management as of March 31 this year.
Murtaza Hussain, Managing Partner at Lunate, said, “This transaction further supports our Long Term Capital strategy to invest in premium assets, delivering attractive yields and capital appreciation. Importantly, this investment also reinforces our existing relationship with Brookfield and marks the beginning of a valued partnership with ICD.”