Lunate and Olayan take 49% stake in ICD Brookfield Place

Investment firms Olayan Financing Company and Abu Dhabi-based Lunate are acquiring nearly half of the ICD Brookfield Place (ICDBP) commercial and retail property in the UAE from owners Brookfield and Investment Corporation of Dubai (ICD).

The transaction, which represents the largest institutional third-party single asset real estate deal, will give Olayan and Lunate, via one of its funds a 24.5% equity interest each in ICDBP alongside Brookfield and ICD’s combined 51% stake in the asset.

Financial details were undisclosed.

ICDBP, the premier mixed-use real estate development located in the Dubai International Financial Centre is over 98% occupied at premium rents, the companies said in a joint statement.

Brookfield’s real estate operating arm Properties will continue to manage the property with 1.1m sqft of net leasable area.

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 in the innovation in Dubai’s real estate.”

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.”

Nabeel M Al Amudi, CEO, Olayan Financing Company, said: ”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.”

Murtaza Hussain, managing partner at Lunate, said: “We are pleased to announce our acquisition of a stake in ICD Brookfield Place, one of the most iconic real estate developments in the MENA region.

”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.”

In December last year, Altérra, A US$30bn (€27.7bn) climate-focused fund launched by the United Arab Emirates at the COP28 Climate Summit in Abu Dhabi through Lunate committed capital to energy transition funds managed by Brookfield.

To read the latest IPE Real Assets magazine click here.