ICD and Brookfield Sells 49% Stake in DIFC to Lunate and Olayan Financing Company

Investment Corporation of Dubai (ICD) and Brookfield Corporation (Brookfield) on Monday announced that they have signed an agreement with Saudi Arabia’s Olayan Financing Company and Lunate, the UAE-based alternative investment firm, for the sale of a 49% stake in ICD Brookfield Place (ICDBP), a world-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. 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.

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 Lunate’s commitment to making strategic investments in high-quality assets globally. 

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.

Major Landmark

ICD Brookfield Chirman Khalid Al Bakhit said that 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,” Bakhit added.

Echoing the sentiment, Jad Ellawn, Managing Partner, Regional Head of the Middle East, Brookfield said that 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.

Nabeel M Al-Amudi, CEO of Olayan Financing Company, said that acquiring this significant stake in ICD Brookfield Place represented a strategic addition to their diverse portfolio and showcased their commitment to investing in high-quality, sustainable real estate assets that align with the company’s 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.

Murtaza Hussain, Managing Partner at Lunate, said that their acquisition of a stake in ICD Brookfield Place, one of the most iconic real estate developments in the MENA region, supported their 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,” he added.

ICD Brookfield Place is recognised 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.