Brookfield and Alshaya team up on Dubai Hills project

…and they’re coming for UAE property: Canadian alternative asset manager Brookfield just made another investment in the UAE’s property sector, and it couldn’t have come at a more critical time. While preliminary data has indicated that the market is still holding its ground, the wait-and-see phase is still seeing activity ease, and the major concern has been whether foreign investors still want to put their money in assets in the region, despite the geopolitical risk.

Brookfield has been an active player in the UAE for a few years now, with projects including a nine-tower beachfront development, which it’s developing through a joint venture with Dubai Holding and the ICD Brookfield Place. Last year it set up a USD 1 bn JV with asset manager Lunate focused on residential real estate in the Middle East.

Now it’s teaming up with Kuwait-founded retail franchise operator Alshaya Group on a 480k sq ft mixed-use development in Dubai Hills, which is set to include Grade A offices, build-to-rent housing, and retail space, according to a press release.

The project has been on Brookfield’s radar for a while, and the fact that the transaction went through months into the war is a great signal for the sector. Aside from Brookfield, plenty of foreign firms are pushing ahead with expansion plans and investments in the UAE, with asset managers like Citadel and Hillhouse planning ADGM offices — but this is the first direct foreign investment in Dubai real estate since the war began.

Who’s doing what? Brookfield Properties will act as development and real estate manager, while Alshaya will anchor part of the site as its new UAE office and integrate some of its brands into the retail spaces.