DUBAI, May 20 (Reuters) - Abu Dhabi alternative

investment manager Lunate is setting up a $1 billion Middle East

residential real estate joint venture with Brookfield, according

to a statement on Tuesday.

The venture will focus on "developing high-quality

build-to-sell and opportunistic buy-to-sell residential assets"

across the UAE, Saudi Arabia, and other markets in the Middle

East, the statement said. It will also establish its own

dedicated team to develop and manage these assets.

Lunate, which has $110 billion in assets under management,

will commit a "significant" cornerstone investment to the

venture, it said. The Abu Dhabi firm will also leverage its

regional network and capabilities to help drive the venture's

commercialization and fundraising efforts, it added.

The deal follows Lunate's acquisition of a 24.5% equity

interest in ICD Brookfield Place, a flagship commercial tower in

Dubai's financial center, in March 2024.

The Gulf's business and tourism hub, Dubai has experienced a

post-pandemic property boom, fuelled by foreign investment and

government-led residency reforms.

Residential real estate values in the emirate surged almost

70% in the four years to December 2024, according to Knight

Frank. Neighbouring Abu Dhabi has also seen demand from foreign

buyers on the back of business activity from hedge funds, family

offices and cryptocurrency firms.

In Saudi Arabia's capital, Riyadh, apartment values have

climbed 75% in the last four years, according to Knight Frank

research.