Brookfield and Lunate to Invest in Real Estate Sector

Brookfield Asset Management, through its Middle East private equity strategy and Lunate, an Abu Dhabi-based global alternative investment manager with more than $110 billion in assets under management, has announced a joint venture (JV) to invest in the residential real estate sector in the Middle East.

The JV, with total projected equity of $1 billion, will focus on developing high-quality build-to-sell and opportunistic buy-to-sell residential assets across the UAE, Saudi Arabia, and other markets in the Middle East.

Lunate will commit a significant cornerstone investment to the JV and will leverage its regional network and capabilities to help drive the JV’s commercialisation and fundraising efforts. This is in line with its strategy to develop differentiated investment partnerships and vehicles targeting compelling opportunities in high-growth sectors.

The JV will establish its own dedicated team to develop and manage these assets. It aims to capitalise on favourable trends in the Middle East’s residential real estate market, underpinned by strong economic performance and robust population growth.

The region continues to draw global interest as an emerging investment destination, demonstrated by the UAE’s position as the top location for wealthy migrants in 2024.

Prime residential properties in the region continue to experience strong capital appreciation and positive rental growth with low vacancies, while property prices remain highly competitive in comparison to other global cities, enhancing their investment appeal.

The prime residential values in Dubai and Abu Dhabi, key focus markets for the JV, have increased by 18% and 11.1% respectively in 2024, with continued outperformance in 2025.

This new JV follows Lunate’s March 2024 acquisition of a 24.5% equity interest in ICD Brookfield Place, a world-class commercial and retail property located in the Dubai International Financial Centre (DIFC).

Offering Investment Opportunities

Khalifa Al Suwaidi, Managing Partner at Lunate, said that the partnership with Brookfield is a strong demonstration of Lunate’s ability to provide their clients access to compelling investment opportunities by joining forces with experienced investment managers.

Brookfield brings unparalleled real estate and investment expertise, with a proven track record of delivering marquee developments, both regionally and globally. The Middle East’s residential real estate sector presents a highly attractive investment opportunity, driven by the region’s strong economic outlook and growing status as a hub for global wealth and talent, he said.

Jad Ellawn, Managing Partner and Regional Head, Middle East, Brookfield, said that the JV is significant as they were expanding into the high-quality residential real estate sector, driven by a rising population seeking premium properties.

“By combining our private equity operating expertise with our deep global real estate development and management experience, we are well-positioned to deliver best-in-class assets catering to this demand. This partnership underscores our commitment to creating long-term value for investors while catering to the evolving consumer preferences,” Ellawn added.

Brookfield has a longstanding presence across sectors in the region, deep partnerships, and approximately $15 billion in managed assets across private equity, real estate, and infrastructure.