(Bloomberg) -- An Abu Dhabi investment firm and a Saudi conglomerate have bought into the largest office tower in Dubai’s financial hub, securing a slice of one of the world’s few upbeat commercial property markets.

The $105 billion fund Lunate and Saudi Arabia’s Olayan Financing Company have bought a 49% stake in ICD Brookfield Place in one of the largest commercial real estate transactions since the start of the pandemic, according to a statement. Financial details weren’t disclosed, though Bloomberg has previously reported the tower could be worth as much as $1.5 billion.

ICD Brookfield Place has become “the most coveted address in Dubai for businesses and leisure alike,” Khalid Al Bakhit, chairman of the development, said in the statement. “This transaction underscores the trust and confidence in this incredible development and in the innovation in Dubai’s real estate.”

ICD Brookfield Place towers more than 900 feet (283 meters) over Dubai’s financial free-zone, and includes roughly a million square feet of office space, a members’ only club, a gym, supermarket and several restaurants. The building, which commands premium rents, is over 98% occupied and Brookfield will continue to manage the property after the deal closes.

Upon completion of the deal, ICD and Brookfield are set to retain a combined 51% equity interest in the tower that will be split equally between the two sides.

The sale comes amid a boom in Dubai’s commercial real estate market, which has become among the best-performing worldwide. That’s due to an influx of high-profile firms drawn by Dubai’s proximity to deep-pocketed funds, ease of doing business, light tax regime and a favorable time zone. 

“This investment is a testament to the continued demand for premier office properties like ICD Brookfield Place and underscores the fact that capital continues to seek high-quality real estate globally,” Jad Ellawn, managing partner and regional head of the Middle East for Brookfield, said in the statement.

Reas More: Dubai’s Golden Visas Are Helping City Defy Global Office Slump

ICD Brookfield Place has seen rents soar since it opened in the middle of the pandemic in 2020. That’s in stark contrast to similar properties in London and New York, where rising interest rates and slower return to the office have hurt occupancy. 

Brookfield Asset Management and state-owned Investment Corp. of Dubai put up the tower for sale last year and initially attracted interest from Asian and regional buyers. Many of the world’s top banks and law firms including JPMorgan & Chase Co. and ‎Freshfields Bruckhaus Deringer have their regional headquarters in the tower.  

Olayan is one of Saudi Arabia’s biggest conglomerates, with more than 32 operating companies. Lunate is a rising player in Abu Dhabi, an emirate that’s used energy riches to become a major force in the investing landscape. The city is home to wealth funds Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ, which together oversee well over a $1 trillion in assets in total.

©2024 Bloomberg L.P.