Abu Dhabi alternative investment manager Lunate is setting up a $1 billion Middle East residential real estate joint venture with Brookfield, according to a statement on Tuesday.
The venture 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, the statement said. It will also establish its own dedicated team to develop and manage these assets.
Lunate, which has $110 billion in assets under management, will commit a "significant" cornerstone investment to the venture, it said. The Abu Dhabi firm will also leverage its regional network and capabilities to help drive the venture's commercialization and fundraising efforts, it added.
The deal follows Lunate's acquisition of a 24.5% equity interest in ICD Brookfield Place, a flagship commercial tower in Dubai's financial center, in March 2024.
The Gulf's business and tourism hub, Dubai has experienced a post-pandemic property boom, fuelled by foreign investment and government-led residency reforms.
Residential real estate values in the emirate surged almost 70% in the four years to December 2024, according to Knight Frank. Neighbouring Abu Dhabi has also seen demand from foreign buyers on the back of business activity from hedge funds, family offices and cryptocurrency firms.
In Saudi Arabia's capital, Riyadh, apartment values have climbed 75% in the last four years, according to Knight Frank research.
