Friday, 5 January 2024
#Dubai Real Estate: #AbuDhabi’s ADQ Weighs Bidding for ICD Brookfield Place - Bloomberg
Dubai Real Estate: Abu Dhabi’s ADQ Weighs Bidding for ICD Brookfield Place - Bloomberg
An Abu Dhabi-based wealth fund is considering joining a list of bidders vying for a minority stake in Dubai’s largest office tower, people familiar with the matter said, seeking to grab a slice of one of the world’s hottest commercial property markets.
The $157 billion ADQ, part of Sheikh Tahnoon bin Zayed Al Nahyan’s sprawling empire, is interested in buying into ICD Brookfield Place, the people said, asking not to be identified as the talks are private. The tower in the heart of Dubai’s financial district could be worth as much as $1.5 billion, they said.
Owners Brookfield Asset Management and state-owned Investment Corp. of Dubai are looking to sell a stake of as much as 49%. They have drawn interest from bidders including China Investment Corp. and Malaysia’s KLCC Property Holdings Bhd, Bloomberg has reported.
Some bidders have expressed concerns over the price in a high interest rate environment, the people said. No final decisions have been made.
Representatives for ADQ, Brookfield and Investment Corp. of Dubai declined to comment.
The Abu Dhabi fund’s interest comes against a backdrop of booming demand for office space in Dubai — amid an influx of high-profile businesses drawn by the city’s proximity to deep-pocketed funds, ease of doing business, tax-free status and a favorable time zone.
ICD Brookfield Place has seen rents soar since it opened in the middle of the pandemic in 2020. Strong demand has meant the tower is nearing full occupancy while commanding some of the city’s highest commercial rents. That’s in stark contrast to similar properties in London and New York where rising interest rates and slower return to the office have hurt occupancy.
Sheikh Tahnoon, the United Arab Emirates’ national security adviser and brother to the country’s president, is the de facto business chief of the Al Nahyan family. Over the years, he’s emerged as one of the world’s most influential businessmen, and now helms two wealth funds, a $300 billion private investment firm as well as the nation’s largest lender.
Last year, ADQ and another firm linked to the royal consolidated key real estate assets under one entity to create a $12 billion property giant.
An Abu Dhabi-based wealth fund is considering joining a list of bidders vying for a minority stake in Dubai’s largest office tower, people familiar with the matter said, seeking to grab a slice of one of the world’s hottest commercial property markets.
The $157 billion ADQ, part of Sheikh Tahnoon bin Zayed Al Nahyan’s sprawling empire, is interested in buying into ICD Brookfield Place, the people said, asking not to be identified as the talks are private. The tower in the heart of Dubai’s financial district could be worth as much as $1.5 billion, they said.
Owners Brookfield Asset Management and state-owned Investment Corp. of Dubai are looking to sell a stake of as much as 49%. They have drawn interest from bidders including China Investment Corp. and Malaysia’s KLCC Property Holdings Bhd, Bloomberg has reported.
Some bidders have expressed concerns over the price in a high interest rate environment, the people said. No final decisions have been made.
Representatives for ADQ, Brookfield and Investment Corp. of Dubai declined to comment.
The Abu Dhabi fund’s interest comes against a backdrop of booming demand for office space in Dubai — amid an influx of high-profile businesses drawn by the city’s proximity to deep-pocketed funds, ease of doing business, tax-free status and a favorable time zone.
ICD Brookfield Place has seen rents soar since it opened in the middle of the pandemic in 2020. Strong demand has meant the tower is nearing full occupancy while commanding some of the city’s highest commercial rents. That’s in stark contrast to similar properties in London and New York where rising interest rates and slower return to the office have hurt occupancy.
Sheikh Tahnoon, the United Arab Emirates’ national security adviser and brother to the country’s president, is the de facto business chief of the Al Nahyan family. Over the years, he’s emerged as one of the world’s most influential businessmen, and now helms two wealth funds, a $300 billion private investment firm as well as the nation’s largest lender.
Last year, ADQ and another firm linked to the royal consolidated key real estate assets under one entity to create a $12 billion property giant.