Brookfield, Lunate earmark US$1 billion for Mideast real estate
[DUBAI] Brookfield Asset Management is partnering with the Abu Dhabi-based asset manager Lunate on a US$1 billion joint venture to invest in residential real estate in the Middle East, which is home to some of the world's hottest property markets.
The new venture will focus on investing in Dubai and Abu Dhabi, the United Arab Emirates' finance hubs where property values have surged in recent years. Lunate will commit a significant cornerstone investment, according to a statement on Tuesday (May 20).
The deal is the latest example of the allure of markets like Dubai, where property prices have surged 70 per cent in the last four years. The city is starting to entice a slew of new Wall Street investors, with Brookfield among firms looking to expand, Bloomberg News has reported.
'Our joint venture with Lunate is significant as we expand into the high-quality residential real estate sector, driven by a rising population seeking premium properties,' Brookfield's Managing Partner and Regional Head for the Middle East Jad Ellawn said.
The latest deal deepens ties between the two firms, and comes a year after the US$110 billion Lunate bought a stake in the largest office tower in Dubai's financial hub from Brookfield.
Brookfield has become one of the biggest foreign investors in the Middle East by building a private equity portfolio of US$8 billion and amassing infrastructure and real estate assets worth US$5 billion. It intends to raise at least US$2 billion for a Middle East-focused fund – the biggest of its kind – while weighing a string of new investments. BLOOMBERG
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