US-based Brookfield to invest in residential real estate in UAE, Saudi Arabia

Dubai: One of the world’s biggest fund managers Brookfield is widening its real estate interests in the region – this time, it’s in residential.

Brookfield has launched a joint venture with Abu Dhabi’s Lunate to invest in residential projects within the Middle East.

The JV is expected to bring in equity of $1 billion, with a ‘focus on developing high-quality build-to-sell and opportunistic buy-to-sell residential assets across the UAE, Saudi Arabia, and other regional markets.

The new JV follows Lunate’s 24.5% stake buy in DIFC-located ICD Brookfield Place, one of the most sought for office addresses in Dubai. (This deal was struck in March 2024.)

“The JV (between Brookfield and Lunate) will establish its own dedicated team to develop and manage these assets,” said a statement.  

“The region continues to draw global interest as an emerging investment destination, demonstrated by the UAE’s position as the top location for wealthy migrants in 2024.”

Brookfield had been busy in the recent past in other Gulf-focused opportunities. In May last year, it bought a majority stake in the commercial real estate platform operated by GII.

Now comes the turn to residential real estate.

“Our joint venture with Lunate is significant as we expand into the high-quality residential real estate sector, driven by a rising  population seeking premium properties," said Jad Ellawn, Managing Partner and Regional Head, Brookfield.

"By combining our private equity operating expertise with our deep global real estate development and management experience, we are well-positioned to deliver best-in-class assets catering to this demand."

Abu Dhabi-based Lunate holds more than $110 billion in assets.