Olayan And Lunate Acquire Stakes In Dubai's Premier Property, ICD Brookfield Place

The Investment Corporation of Dubai (ICD) and Brookfield Corporation have reached a significant agreement with Olayan Financing Company and Lunate regarding the sale of a 49 percent stake in ICD Brookfield Place (ICDBP), a premier commercial and retail property situated in the Dubai International Financial Centre (DIFC). This transaction marks a pivotal moment for real estate investment in the UAE and the broader MENA region, setting a new standard for large-scale, high-quality real estate transactions.

Upon the completion of this deal, Lunate, through one of its funds, and Olayan Financing Company will each hold a 24.5 percent equity interest in ICDBP. Meanwhile, ICD and Brookfield will maintain a majority stake with a combined 51 percent equity interest, equally divided between them. This acquisition is notable not only for its scale but also for being the largest institutional third-party single asset real estate transaction in the UAE since 2020.

Lunate's investment strategy aligns with its Long Term Capital approach, aiming to bolster its Real Assets portfolio by investing in high-quality assets worldwide. ICDBP stands as a testament to this strategy, offering premium space to leading global financial institutions, law firms, and multinational corporations. Currently, ICDBP boasts an occupancy rate of over 98 percent at premium rents, underscoring its status as a premier mixed-use development in DIFC.

Brookfield Properties, acting as the real estate operating arm of Brookfield Corporation, will continue to manage ICDBP. The company brings extensive experience in sustainable property management and maintains strong relationships with existing tenants, many of whom lease additional office spaces under Brookfield Properties' management globally.

Khalid Al Bakhit, Chairman of ICD Brookfield, expressed his enthusiasm about the partnership with Lunate and Olayan. He highlighted the rapid ascension of ICDBP as a major landmark and sought-after address in Dubai for both businesses and leisure. This transaction reflects the confidence and trust vested in this exceptional development and Dubai's innovative real estate sector.

Jad Ellawn, Regional Head of the Middle East at Brookfield, welcomed Lunate and Olayan to the partnership. He emphasized that this investment underscores the ongoing demand for premier office properties like ICDBP and demonstrates that capital continues to flow towards high-quality real estate globally.

Nabeel M. Al-Amudi, CEO of Olayan Financing Company, remarked on the strategic nature of this acquisition for their diverse portfolio. He stressed their commitment to investing in sustainable real estate assets that offer long-term value creation. Al-Amudi expressed excitement about joining forces with ICD, Brookfield, and Lunate to contribute to the success and legacy of ICDBP.

Murtaza Hussain from Lunate reflected on the acquisition as an enhancement to their Long Term Capital strategy. Investing in ICDBP not only promises attractive yields and capital appreciation but also strengthens their relationship with Brookfield and initiates a valued partnership with ICD.

This transaction signifies a major milestone in the UAE's real estate market, showcasing a strong vote of confidence in Dubai's ability to attract substantial international investments into its thriving property sector.

With inputs from WAM