Investment firms from Abu Dhabi and Saudi Arabia have joined forces to acquire nearly half ownership of Dubai's most impressive office tower, the ICD Brookfield Place. Lunate, an Abu Dhabi-based alternative investment firm, and Olayan Financing Company, a prominent Saudi conglomerate, announced a deal to purchase a 49% stake in the skyscraper, signaling confidence in Dubai's flourishing commercial real estate market.
Financial details of the transaction remain undisclosed, but estimates suggest the iconic tower could be valued as high as $1.5 billion. The acquisition marks the largest institutional third-party single-asset real estate deal ever completed in the United Arab Emirates and positions Lunate and Olayan among the key players in Dubai's booming commercial property sector.
Dubai's ICD Brookfield Place, which opened its doors in September 2020, boasts 53 stories of prime office space situated within the heart of the Dubai International Financial Centre (DIFC), the emirate's leading financial hub. The skyscraper enjoys an occupancy rate exceeding 98%, solidifying its position as a premier location for businesses seeking a prestigious address.
This landmark deal reflects a growing trend of collaboration between the UAE's emirates. With Dubai's commercial real estate sector experiencing a significant upswing, investors from Abu Dhabi and Saudi Arabia are increasingly recognizing the potential for lucrative returns. The transaction also highlights Dubai's enduring appeal as a global business destination, particularly in the wake of the COVID-19 pandemic. While commercial property markets in many major cities grapple with lingering uncertainty, Dubai's strategic location, pro-business environment, and commitment to innovation have positioned it as a beacon of stability and growth.
Lunate and Olayan's investment underscores the robust performance of Dubai's commercial real estate market. The emirate has successfully navigated the challenges posed by the pandemic and emerged with a thriving economy. This deal serves as a testament to Dubai's ability to attract significant foreign investment and further solidify its reputation as a leading financial and commercial center in the Middle East.