Riyadh’s Olayan Group and Abu Dhabi investment firm Lunate have acquired a 49% stake in ICD Brookfield Place (ICDBP), buying into Dubai’s largest office tower, according to a joint statement last week.The acquisition is one of the largest commercial real estate transactions globally since 2020 — and stands out as a rare commitment to office space after demand for the asset class contracted sharply in most major global centers in the wake of the covid-19 pandemic.

What we know: Olayan Financing Company and a Lunate fund will separately acquire 24.5% stakes in the tower. The Investment Corporation of Dubai (ICD) — the Dubai government’s principal investment arm — and Brookfield will evenly split the remaining 51%. Financial terms of the agreement were not disclosed, but Bloomberg previously set the tower’s value at USD 1.5 bn.

We’ve been expecting this: The tower was put up for sale last year with interest mainly coming from buyers from the region and Asia, according to Bloomberg. Abu Dhabi wealth fund ADQ was reportedly among bidders looking to grab a minority stake in the tower.

About the tower: ICDBP is a mixed-use real estate development that is home to global financial institutions, law firms and others. Tenants include JP Morgan, BNP Paribas, Clifford Chance and others. It is over 98% occupied at premium rents, according to the statement.

What they said: “Acquiring this significant stake in ICD Brookfield Place represents a strategic addition to our diverse portfolio. It showcases our commitment to investing in high-quality, sustainable real estate assets that align with our long-term view of value creation,” Olayan Financing Company CEO Nabeel M. Al Amudi said. “This investment is a testament to the continued demand for premier office properties like ICD Brookfield Place and underscores the fact that capital continues to seek high-quality real estate globally,” added Jad Ellawn, managing partner and regional head of the Middle East at Brookfield.

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