The Dh1.835 billion ($500 million) Investment Corporation of Dubai (ICD)-Brookfield real estate fund will be ready to invest in Dubai’s realty sector by the year-end, according to its fund manager.
“Right now we are dealing with the licence at the DIFC [Dubai International Financial Centre]... If you mean launch as in active marketing and legally able to do it, we will hit that point right before Ramadan,” Douglas Kirkman, CEO of ICD-Brookfield Management Limited and manager of the ICD-Brookfield Dubai Real Estate Fund, told Arabian Business.
Since the global economic downtown affected UAE realty market, no companies had announced any new or (distressed) funds targeting the UAE property market expect ICD-Brookfield.
“At that point we can formally launch and market [the fund]. We have our capital available. In terms of closing the fund, as in finished raising the funds... inshallah the end of the year,” he added.
In February, Emirates 24|7 reported that a move to start the fund had been made with ICD and Brookfield Asset Management, the co-promoters of the fund, naming Douglas Kirkman, Senior Vice-President of the Brookfield Property Group, as Chief Executive Officer of ICD-Brookfield Management Limited, the firm that will manage the fund.
“The fund, once formed, will pursue opportunities in the Dubai real estate sector with a particular focus on development opportunities,” the companies said.
In 2011, ICD and Brookfield had announced that they would each seed the $1 billion fund, having a life of 8 to 10 years, with $100 million in capital and later raise funds from a select group of local, regional and international investors.
In April 2012, the fund joined Dubai Land Department’s (DLD) Tanmia initiative that aims to finish “incomplete” projects.
The Tanmia programme, launched in September 2011, aims at revitalising the real estate market by focusing on the incomplete projects under all categories
Brookfield Asset Management is a global alternative asset manager with over $175 billion in assets under management. The company is co-listed on the New York and Toronto stock exchanges and on NYSE Euronext.
ICD is the investment arm of the government of Dubai and holds stakes in over 30 companies, including Emaar Properties and Emirates Airlines.
Knight Frank, a global property company, said in the Wealth Report 2013 that property prices in Dubai rose the second highest globally, registering a 20 per cent increase in 2012.
"Dubai stands out with strong growth of 20 per cent in the price of luxury villas during 2012... the emirate rebounded in 2012 on the back of a
resurgence in demand," the report said.
Moreover, prices of Dubai’s prime luxury properties are far too inexpensive compared to the top global cities.
The Wealth Report revealed that Dubai’s prime luxury properties are much over 10 times lower than Monaco, the world’s most expensive residential property market.
Data released by DLD disclosed that the total value of real estate transactions rose 63 per cent to Dh44 billion in first quarter 2013 compared to same period last year.
The number of transactions amounted to 14,260 at a rate of 223 per day and 32 per hour with "impressive" growth registered in the residential and commercial sector.
Follow Emirates 24|7 on Google News.
