UAE's Lunate, Saudi Olayan Buy 49% of Dubai's ICD Tower

Post by: Dr. Amrinder Pal Singh

Abu Dhabi-based global alternative investment management company Lunate and Saudi conglomerate Olayan Financing Company have reached an agreement to purchase a 49 percent stake in Dubai's ICD Brookfield Place. This acquisition, from the current owners Investment Corporation of Dubai (ICD) and Brookfield Corporation, will see Lunate and Olayan each holding a 24.5 percent share in the iconic 53-storey tower located in the Dubai International Financial Centre (DIFC), which opened its doors in September 2020.

The remaining 51 percent equity interest will be retained by ICD and Brookfield, with both parties holding an equal share. Financial terms of the deal were not disclosed. Brookfield Properties will continue to manage the property, which boasts an impressive occupancy rate of over 98 percent, with global financial institutions, law firms, and multinational corporations among its tenants.

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This transaction stands out as the largest institutional third-party single asset real estate deal in the UAE and one of the most significant commercial real estate transactions worldwide since 2020. Khalid Al Bakhit, chairman of ICD Brookfield, hailed the property as a major landmark and sought-after destination for businesses and leisure in Dubai.

The acquisition comes amidst a booming property market in Dubai, fueled by favorable interest rates and residency policies that encourage long-term investment. In 2023, real estate transactions surged by a record 17 percent annually, reaching 1.6 million deals across various segments, with a total value of Dh634 billion ($172.6 billion).

Murtaza Hussain, managing partner at Lunate, emphasized that the investment aligns with their long-term capital strategy of investing in premium assets offering attractive yields and capital appreciation. Lunate, backed by Chimera Investment, boasts $105 billion in assets under management and has a diverse portfolio spanning private equity, venture capital, real assets, and public markets.

Olayan Financing Company's CEO, Nabeel Al Amudi, highlighted the strategic significance of the acquisition, showcasing their commitment to investing in high-quality, sustainable real estate assets. With a portfolio comprising over 32 companies and investments across public equities, private equities, and real estate, Olayan Financing Company is a prominent player in the global investment landscape.

ICD Brookfield Place, with construction commencing in 2015 at a cost of approximately $1 billion, offers 92,000 square meters of office space, 15,000 square meters of retail space, and 13,000 square meters of green space. It houses renowned multinational corporations and establishments such as Ernst & Young, Julius Baer, Latham & Watkins, UBS, and The Arts Club of London, further solidifying its status as a premier business and leisure destination in Dubai.

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