DUBAI: Abu Dhabi investor Lunate and Saudi conglomerate Olayan Group have agreed to acquire a 49 per cent stake in ICD Brookfield Place, a major commercial property in Dubai's financial centre.
The deal is one of the biggest commercial real estate transactions globally since 2020, the companies said in a statement without disclosing financial terms.
Under the deal, a Lunate fund and Olayan Financing Company will each own 24.5 per cent of the tower. Dubai's sovereign wealth fund ICD and Brookfield will retain the remaining 51 per cent.
ICD Brookfield Place counts major global financial institutions, law firms and multinational corporations among its tenants. Its 1.1 million square feet of net leasable area are over 98 per cent occupied at premium rents, according to the statement.
The acquisition marks a rare upbeat deal amid a global downturn in commercial real estate markets, with the United States and Europe in the grip of the biggest slowdown since the 2008-9 global financial crisis.
"This transaction underscores the trust and confidence in this incredible development and in the innovation in Dubai's real estate," ICD Brookfield Chairman Khalid Al Bakhit said in the statement.
Lunate manages $105 billion of assets and is part of a business empire steered by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates (UAE) national security adviser and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan.
The firm's investments, which include the acquisition announced last week of a 40% stake in the entity that leases ADNOC's oil pipelines, highlight how Abu Dhabi is creating a new national champion in alternative investments. - Reuters