Investment Corporation of Dubai and Brookfield launch Dubai Real Estate Fund
WAM Dubai, Oct 26th, 2011 (WAM) -- Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, and Brookfield Asset Management Inc. (TSX: BAM.A, NYSE: BAM), a leading global alternative asset manager focused on property, renewable
WAM Dubai, Oct 26th, 2011 (WAM) -- Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, and Brookfield Asset Management Inc. (TSX: BAM.A, NYSE: BAM), a leading global alternative asset manager focused on property, renewable power and infrastructure assets with approximately $150 billion of assets under management, today signed a memorandum of understanding to form an investment fund to focus on the real estate sector in Dubai.
The fund will be jointly sponsored by ICD and Brookfield who will each seed the fund with USD100 million. 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. It is intended that the fund's final size will be capped at USD1 billion.
Commenting on the MoU, H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman the Government of Dubai's Supreme Fiscal Committee, Board Member of ICD and Chairman of Emirates NBD PJSC and the Emirates Group said: "We see this agreement as another big step in our next phase of growth. It once more affirms Dubai's attractiveness as a premier investment destination in this region." In line with ICD's objectives to champion the principles of good governance and transparency within the Dubai economy, the fund will be operated in accordance with best international practices in governance, risk-management, transparency and investors relations.
The investment strategy of the fund will target opportunities currently available in the Dubai real estate sector, with a focus on a wide class of assets in both freehold and non-freehold areas. The fund will have a life of 8 to 10 years.
Investors in the fund will benefit from Brookfield's wealth of experience as one of the world's largest and most pre-eminent owner, operator and builder of real estate; its expertise in managing third-party investor capital in over 20 private funds; and its long-standing presence in Dubai. Brookfield's global construction business, Brookfield Multiplex, has been constructing iconic buildings in Dubai and other countries in the Middle East since 1997 and has 2,000 employees in Dubai. Brookfield intends to relocate senior investment executives to Dubai from its network of international offices to manage the fund who will work together with qualified UAE nationals to form a highly focussed and specialised team of fund managers.
Mohammed Ibrahim Al Shaibani, Executive Director and CEO of ICD said, "We are extremely pleased to have Brookfield as our partner in this initiative. Brookfield has an unparalleled reputation in global real estate and infrastructure investment. This venture with Brookfield is the first "Dubai only" investment fund that is sponsored by a leading international investor." Al Shaibani added: ICD is looking forward to participating in the recovery of the Dubai real estate market." Bruce Flatt, Chief Executive Officer of Brookfield, said, "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. We are excited to have ICD as our partner in this fund. As the Government of Dubai's principal investment arm, we believe that together we have the perfect combination of skills, experience and market insight to deliver a unique opportunity for investors." WAM/AM