A Bermuda-based property developer is to join forces with a Qatar investment firm in a massive $8.6 billion development in New York.

Brookfield Property Managers has teamed up with the Qatar Investment Authority (QIA) to develop a five building, seven million square foot project in the west of Manhattan.

Bruce Flatt, the CEO of Brookfield subsidiary Brookfield Asset Management, which will carry out the partnership development, said: “Brookfield has enjoyed a longstanding successful relationship with the Qatar Investment Authority and we are thrilled that they share our vision for this transformative project.”

The deal means that Brookfield has sold a 44 per cent stake in the development to QIA.

QIA CEO Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani added: “We are pleased to expand our relationship with Brookfield and invest in this world-class project.

“This joint venture is an example of our strategy to invest in high-quality real estate with strong partners.

“it is also a further demonstration of QIA’s long-term confidence in the US market.”

The development will be bounded by 31st and 33rd Streets and 9th and 10th Avenues and feature a mixed-use development with offices, residential and retail space.

The news came as Brookfield Property Partners unveiled its results for the third quarter of the year and announced Ric Clark as chairman and Brian Kingston as CEO.

The firm reported funds from operations of $218 million — $19 million up on the $199 million recorded for the same period last year.

Brookfield said the increase was driven by major acquisitions during the year, including an increased interest in London’s Canary Wharf and, through its participation in Brookfield-sponsored real estate funds, the acquisition of holiday centres Center Parcs in the UK and Associated Estates in the US.

In addition, Brookfield’s office and rental operations had “positive same-store growth”.

Net income attributable to shareholders for the quarter was $193 million (27 cents per unit) down from the $978 million ($1.37 per unit) recorded in the same period last year.

The firm said: “The decrease in the year-over-year result is mainly attributable to greater fair value gains realised in the third quarter of the prior year.”

Mr Clark said: “Our financial results for the quarter were bolstered partly by revenues coming online from the new leases at Brookfield Place in downtown Manhattan, which will have a large impact on funds from operations in the fourth quarter and to an even greater extent in 2016.”