Canada’s Brookfield Asset Management and Dubai’s Meraas Holding have agreed to form a joint venture (JV) valued at 5 billion dirham ($1.4 billion) to own and operate Meraas’ retail assets.
The assets include Dubai sites The Beach, City Walk and La Mer, Meraas said in a statement on Sunday.
The statement did not disclose how much each party held in the JV. The assets were previously owned by Meraas, which says its portfolio includes more than 1,400 retail units.
Dubai, a major shopping destination for Middle East and South Asian travellers, has seen its retail sector suffer in recent years.
A strong dollar, the introduction of a 5% value-added tax and weaker consumer confidence have dented retail appetite, analysts say.
“We believe in the future of the Dubai real estate market and look forward to working together with Meraas to create the leading retail player in the regional market,” Brookfield Property Group CEO Brian Kingston said in the statement.
Dubai’s Meraas Holding, Canada's Brookfield create $1.4 bln retail JV