The new entity will form its presence in the Middle East to create build to sell assets.
Brookfield Asset Management (a New York Stock Exchange-listed company) and Lunate (an Abu Dhabi alternative investment manager) are forming a $1 billion joint venture to invest in the well-performing real estate market in Middle Eastern.
The two businesses said in a statement on Tuesday that the partnership will concentrate on creating “opportunistic” buy-to-sell and build-to-sell residential assets throughout the Middle East.
With over $110 billion in assets managed, Lunate will make a “significant cornerstone investment” in the joint venture.
In order to support the joint venture’s commercialisation and fundraising initiatives, it will also “make use of its regional network and capabilities.”
Following Lunate’s purchase of a 49% interest in Dubai’s 53-story ICD Brookfield Place building last year, the announcement was made. The agreement includes Saudi company Olayan Financing Company.
The Middle East’s residential real estate market offers an attractive investment opportunity, according to Khalifa Al Suwaidi, managing partner at Lunate. This is because of the region’s promising economic outlook and its reputation as a centre for talent and money from around the world.
Government programs like granting residency permits to remote workers and retirees, as well as a growing economy driven by non-oil diversification and rising oil prices, have contributed to the real state bubble in various Middle Eastern markets, like the United Arab Emirates.
There has also been a positive impact on the real estate market due to the migration of wealthy and high net worth individuals. According to data from Henley & Partners, real estate firm Knight Frank said that 7,200 millionaires entered the United Arab Emirates last year, adding to the 4,700 who arrived in 2023 and the 5,200 who arrived in 2022.
At the end of December, there were 130,500 dollar millionaires in the United Arab Emirates, making it the 14th largest wealth market in the world.
As mentioned by the firms, prime residential values in Dubai has risen by 18.11% and Abu Dhabi by 11.1%.
As the economy continues to grow, Saudi Arabia has also seen an increase in real estate prices. According to Knight Frank, apartment prices in Riyadh have increased by 75% over the past four years.
Jad Ellawn, the managing partner and regional head of the Brookfield – Middle East, stated that their joint venture with Lunate is significant as they expand into the high-quality residential real estate sector, driven by a rising population seeking premium properties.
With $15 billion in managed assets spread across infrastructure, real estate and private equity, Brookfield has a significant influence in a number of industries in the area.
International businesses are also growing in the Gulf area, such as The Trump Organisation who recently announced a collaboration with Dar Global (London listed company)
Henry Wiltshire International is a multi-award winning brokerage with more than 11 years of experience in Abu Dhabi. We specialise in luxury and off-market properties as well as a full range throughout the city and islands. If you’re looking to buy, sell or lease, contact us at +971 56 484 3380
