China Investment Corp., and Malaysia’s KLCC Property Holdings Bhd are among potential bidders for a stake in an office tower in the heart of Dubai’s financial district, according to people with knowledge of the matter.
(Bloomberg) — China Investment Corp., and Malaysia’s KLCC Property Holdings Bhd are among potential bidders for a stake in an office tower in the heart of Dubai’s financial district, according to people with knowledge of the matter.
Its owners, Brookfield Asset Management and state-owned Investment Corp. of Dubai, may sell a stake of as much as 49% in ICD Brookfield Place, whose tenants include JPMorgan Chase & Co. and Bank of America Corp. the people said, asking not to be identified because the talks are private.
The joint venture has received interest from more than a dozen entities globally, including sovereign wealth and pension funds, the people said. At least one candidate showed interested in buying the whole tower, two of the people said. Saudi Arabia’s Hassana Investment Co. has also been among those involved in talks, the people said. A Hassana official categorically denied any negotiations or interest in the building named in the article.
The companies are working with Emirates NBD Capital and JPMorgan on the sale, Bloomberg has previously reported.
Final decisions haven’t been made and the companies may decide not to sell the stake, the people said. Representatives for ICD Brookfield and CIC declined to comment. Representatives for KLCC didn’t immediately respond to an emailed request for comment.
KLCC Property, or KLCC REIT, is Malaysia’s largest self-managed stapled security that owns the iconic Petronas Twin Towers.
The sale talks come amid a surge in demand for top-tier office space in Dubai, where rents have outpaced hubs like London and New York as businesses expand into the financial hub known for its love of glitzy construction.
ICD Brookfield Place is an equally-owned joint venture partnership between ICD and Brookfield. The skyscraper, which towers more than 900 feet (274 meters) over the city’s financial district, opened just as the pandemic spread globally. It has 46 elevators serving 53 floors, and indoor gardens to escape the summer heat.
–With assistance from Zhang Dingmin and Ram Anand.
(Adds Hassana denial of involvement in third paragraph.)
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