Brookfield Asset Management and Abu Dhabi-based investment firm Lunate have launched a $1bn joint venture to develop build-to-sell residential assets across the Middle East, with a primary focus on the UAE and Saudi Arabia.

The JV will target high-quality, opportunistic housing developments as both firms seek to tap into strong regional fundamentals, including robust economic growth, surging demand, and increasing population inflows. Lunate will provide a significant cornerstone investment and leverage its regional network to support project commercialisation and capital raising.

“This partnership underscores our commitment to creating long-term value for investors while catering to the evolving consumer preferences,” said Jad Ellawn, Managing Partner and Regional Head, Middle East at Brookfield. “By combining our private equity expertise with deep real estate capabilities, we’re well-positioned to deliver premium assets aligned with market demand.”

Khalifa Al Suwaidi, Managing Partner at Lunate, added: “Our partnership with Brookfield is a strong demonstration of our ability to provide clients with access to compelling investment opportunities by joining forces with experienced managers.”

The JV will establish a dedicated team to oversee development and asset management. Dubai and Abu Dhabi – where prime residential values rose by 18% and 11.1% respectively in 2024 – will be key markets of focus, amid ongoing global interest in Middle East real estate.

This initiative follows Lunate’s acquisition of a 24.5% stake in ICD Brookfield Place, strengthening the partnership between the two firms as they expand their presence in the region’s fast-growing property sector.

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