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ICD, Brookfield sells 49pc stake in premium DIFC property

DUBAI, April 8, 2024

Investment Corporation of Dubai (ICD) and Brookfield Corporation (Brookfield) have announced that they have reached an agreement with Olayan Financing Company and Lunate for the sale of a 49% stake in ICD Brookfield Place (ICDBP), a top-class commercial and retail property 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% equity interest in ICDBP, while ICD and Brookfield will retain a combined 51% equity interest, split equally between the two parties. 
 
As the largest institutional third-party single asset real estate transaction in the UAE and one of the largest commercial real estate transactions globally since 2020, this acquisition sets a benchmark for high-quality, large-scale real estate investment in the UAE and the Mena region, said a statement from ICD.
 
Lunate’s investment in ICD Brookfield Place is aligned with its long term capital strategy and strengthens its real assets portfolio. The acquisition, made through one of Lunate’s funds, demonstrates its commitment to making strategic investments in high-quality assets globally.
 
On the strategic sale, ICD Brookfield Chairman Khalid Al Bakhit 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," he noted.
 
According to him, ICD Brookfield Place, the premier mixed-use real estate development located in the DIFC, provides high quality space to major global financial institutions, law firms and multinational corporations. ICD Brookfield Place is over 98% occupied at premium rents.
 
Brookfield Properties, the real estate operating arm of Brookfield Corporation, will continue to manage the property, leveraging its deep expertise in sustainable property management, and its established relationships with existing ICDBP tenants, many of whom lease other offices under Brookfield Properties' management globally, he added.
 
Echoing the sentiment, Jad Ellawn, Managing Partner, Regional Head of the Middle East, Brookfield said: "We are pleased to welcome Lunate and Olayan and are grateful to ICD for their partnership."
 
"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," he added.
 
Olayan Financing Company CEO Nabeel M. Al Amudi 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."
 
"We are excited to join our esteemed partners, ICD, Brookfield, and Lunate, and look forward to contributing to the continued success and legacy of this premier property," he added.
 
Reflecting on the agreement, Murtaza Hussain, Managing Partner at Lunate, expressed delight at the acquisition of a stake in ICD Brookfield Place, one of the most iconic real estate developments in the 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," noted Hussain.
 
According to him, ICD Brookfield Place is recognized as the benchmark office building in the region, distinguishing itself with the prestigious LEED (Leadership in Energy and Environmental Design) Platinum certification and a coveted WELL Health & Safety rating.
 
This strategic positioning empowers companies to seamlessly align with their own ESG targets, he added.-TradeArabia News Service



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