Abu Dhabi-based alternative investment manager Lunate announced today a joint venture with Brookfield Asset Management to invest in the residential real estate sector in the Middle East.
The joint venture, with total projected equity of $1 billion, 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.
“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 unparalleled real estate and investment expertise, with a proven track record of delivering marquee developments, both regionally and globally,” stated Khalifa Al Suwaidi, managing partner at Lunate.
Notably, Lunate and Brookfield’s new joint venture follows Lunate’s March 2024 acquisition of a 24.5 percent equity interest in ICD Brookfield Place, a world-class commercial and retail property located in the Dubai International Financial Centre (DIFC).
Lunate to commit major cornerstone investment
Lunate will commit a significant cornerstone investment to the joint venture and will leverage its regional network and capabilities to help drive its commercialization and fundraising efforts. This falls in line with its strategy to develop differentiated investment partnerships and vehicles targeting compelling opportunities in high-growth sectors.
Lunate and Brookfield’s joint venture will establish its own dedicated team to develop and manage these assets. It aims to capitalize on favorable trends in the Middle East’s residential real estate market, underpinned by strong economic performance and robust population growth.
“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,” added Al Suwaidi.
JV to focus on Dubai and Abu Dhabi
The region continues to draw global interest as an emerging investment destination, demonstrated by the UAE’s position as the top location for wealthy migrants in 2024.
Prime residential properties in the region continue to experience strong capital appreciation and positive rental growth with low vacancies, while property prices remain highly competitive in comparison to other global cities, enhancing their investment appeal.
Prime residential values in Dubai and Abu Dhabi, key focus markets for the joint venture, have increased by 18 percent and 11.1 percent, respectively, in 2024, with continued outperformance in 2025.
“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,” stated Jad Ellawn, managing partner and regional head, Middle East, Brookfield.
Brookfield has a longstanding presence across sectors in the region, deep partnerships and approximately $15 billion in managed assets across private equity, real estate and infrastructure.
