ICD_Brookfield Palace

Olayan and Lunate Acquire Stakes in ICD Brookfield Place

In a significant move in the realm of real estate investment, the Investment Corporation of Dubai (ICD) and Brookfield Corporation have announced an agreement with Olayan Financing Company and Lunate for the sale of a 49 percent stake in ICD Brookfield Place (ICDBP), a prominent commercial and retail property situated in the heart of the Dubai International Financial Centre (DIFC).

Upon completion of the transaction, both Lunate and Olayan Financing Company will each possess a 24.5 percent equity interest in ICDBP. Meanwhile, ICD and Brookfield will retain a combined 51 percent equity interest, evenly split between the two entities. This sale marks the largest institutional third-party single asset real estate transaction in the UAE and stands as one of the most significant commercial real estate deals globally since 2020, setting a new standard for substantial real estate investments in the UAE and the MENA region.

Lunate’s investment in ICD Brookfield Place is aligned with its Long Term Capital strategy and bolsters its Real Assets portfolio. The acquisition, facilitated through one of Lunate’s funds, underscores the company’s dedication to strategic investments in top-tier assets on a global scale.

ICD Brookfield Place, renowned as a premier mixed-use real estate development within the DIFC, boasts high-quality space catering to major global financial institutions, law firms, and multinational corporations, with an occupancy rate exceeding 98 percent at premium rents. Brookfield Properties, the real estate operating arm of Brookfield Corporation, will continue managing the property, leveraging its expertise in sustainable property management and established tenant relationships.

Commenting on the transaction, Khalid Al Bakhit, Chairman of ICD Brookfield, expressed delight in welcoming Lunate and Olayan as partners, emphasizing the confidence and trust in Dubai’s real estate innovation embodied by this development.

Jad Ellawn, Managing Partner and Regional Head of the Middle East at Brookfield, echoed these sentiments, emphasizing the enduring appeal of premier office properties like ICD Brookfield Place in the eyes of investors seeking high-quality real estate globally.

Nabeel M. Al-Amudi, CEO of Olayan Financing Company, hailed the acquisition as a strategic addition to their diverse portfolio, underscoring their commitment to investing in sustainable, high-quality real estate assets that align with their long-term value creation vision.

Reflecting on the agreement, Murtaza Hussain, Managing Partner at Lunate, expressed satisfaction in acquiring a stake in ICD Brookfield Place, highlighting its iconic status in the MENA region and its alignment with Lunate’s investment strategy focused on premium assets with attractive yields and capital appreciation.