Brookfield, Dubai launch $1bn regional opportunistic fund

The investment arm of the Dubai government has teamed up with the Toronto and New York-based asset manager to launch the first investment fund to target Dubai real estate.

The investment arm of the Dubai government has teamed up with Brookfield Asset Management to launch the first opportunistic real estate fund to target Dubai real estate. 

The fund, which has a target capitalization of $1 billion, will be jointly sponsored by the Investment Corporation of Dubai (ICD) and Brookfield. Both firms will seed the fund with $100 million each. The fund intends to invite additional capital from a select group of local, regional and international investors, according to a press release distributed today by the Dubai Government Media Office.

Bruce Flatt

Bruce Flatt, chief executive officer of Brookfield, said in a statement: “Brookfield strongly believes in the continued prominence and importance of Dubai as a regional hub for commerce and trade. We see excellent opportunity in real estate in Dubai. We are witnessing a number of encouraging signs, in particular the arrival of long term capital to the sector, which traditionally marks the early signs of recovery in real estate markets.”

Brookfield’s global construction business, Brookfield Multiplex, has been constructing buildings in Dubai since 1997 and has 2,000 employees in the country. The Toronto and New York-based asset management firm intends to relocate senior investment executives to Dubai from its network of international offices to manage the fund who will work together with qualified United Arab Emirates nationals to form a specialised team of fund managers.

“We see this agreement as another big step in our next phase of growth,” said H.H. Sheikh Ahmed bin Saeed Al Maktoum, chairman the Government of Dubai's Supreme Fiscal Committee and ICD board member.

The fund will target opportunities currently available in the Dubai real estate sector, with a focus on a wide class of assets. A spokesman for Brookfield said that the fund will have a life of 8 to 10 years and is targeting returns of more than 12 percent.

Mohammed Ibrahim Al Shaibani, CEO of ICD said: “This venture with Brookfield is the first 'Dubai only' investment fund that is sponsored by a leading international investor.” He added: “ICD is looking forward to participating in the recovery of the Dubai real estate market.”