Brookfield Asset Management and Lunate have announced a joint venture to invest in residential real estate across the Middle East with projected equity of $1 billion.
The venture will target build-to-sell and buy-to-sell residential assets in the UAE, Saudi Arabia, and other regional markets.
Lunate, an Abu Dhabi-based investment manager with over $110 billion in assets under management, will provide a cornerstone investment and support commercialisation and fundraising efforts.
Lunate, Brookfield partner up
The joint venture plans to establish a dedicated team to develop and manage its property portfolio, focusing on markets experiencing robust population growth and strong economic performance.
According to the announcement, prime residential properties in Dubai and Abu Dhabi – key focus markets for the venture – have seen values increase by 18.0 per cent and 11.1 per cent respectively in 2024, with continued growth expected in 2025.
“Our partnership with Brookfield is a strong demonstration of our ability to provide our clients access to compelling investment opportunities by joining forces with experienced investment managers. Brookfield brings unparallelled 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,” Khalifa Al Suwaidi, Managing Partner at Lunate said.
The announcement highlights the UAE’s position as the top location for wealthy migrants in 2024, contributing to market demand.
The partners also noted that property prices in the region remain competitive compared to other global cities, enhancing investment appeal.
“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. 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,” Jad Ellawn, Managing Partner and Regional Head, Middle East at Brookfield added.
This partnership follows Lunate’s March 2024 acquisition of a 24.5 per cent equity interest in ICD Brookfield Place, a commercial and retail property in the Dubai International Financial Centre.
Brookfield currently maintains approximately $15 billion in managed assets across private equity, real estate, and infrastructure in the Middle East region.
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