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01 March 2024

Dubai's first mega realty project of 2016: $1 billion tower in DIFC

The 50-storey office and hotel tower will come up on Al Sa'ada Street behind the Ritz Carlton Dubai International Financial Centre (DIFC). (Supplied)

By Parag Deulgaonkar

The Investment Corporation of Dubai (ICD) and Canada’s Brookfield will formally launch their first project in Dubai on January 20, 2016, which will also be the first mega project to be launched in 2016.

The 50-storey office and hotel tower will come up on Al Sa’ada Street behind Ritz Carlton Dubai International Financial Centre (DIFC) and is expected to be completed by 2018, market sources told Emirates 24|7.

In October 2015, Zawya Projects quoted unnamed sources saying British architect Foster+Partners was working on the schematic design of the Dh3.67-billion ($1bn) tower and the main construction tender would be released in December 2015.

This, however, could not be corroborated by independent sources.

In 2011, ICD and Brookfield announced they would each seed the $1 billion real estate fund, which will have a life of eight to 10 years.

The initial capital was $100 million with the companies later working to raise funds from a select group of local, regional and international investors.

In April 2012, the company joint venture joined Dubai Land Department’s Tanmia initiative, which 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.

In December 2015, we reported that Dubai had revived 51 projects worth Dh12 billion under its Tanmia initiatives since 2011.

Read: Dubai's Dh12 billion push revives 51 projects

ICD is the investment arm of the Government of Dubai and holds stakes in over 30 companies, including Emaar Properties and Emirates Airlines.

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.