Tecom unlocks $544m in growth opportunities with key acquisitions
DUBAI, 21 days ago
Tecom Group, a leading developer of strategic, sector-focused business districts across Dubai, has completed the acquisition of new commercial and industrial assets as part of an AED1.7 billion ($463 million) strategic plan that was announced in May 2024.
This milestone is in conjunction with Tecom Group's announcement to develop premium Grade-A office spaces worth AED340 million at Dubai Internet City with the launch of Innovation Hub Phase 3, thus bringing the total value of its investments in 2024 to more than AED2 billion ($544 million).
The strategic plan raises Tecom Group's portfolio of high-quality commercial assets to exceed 10 million sq ft of gross leasable area (GLA) and its land leasing portfolio to 179 million sq ft, reinforcing its role as a strategic driver in Dubai's business sector and its leading position at the forefront of the commercial and industrial real estate market.
"The new strategic acquisitions and projects worth AED2 billion reflect Tecom Group's vision of fostering sustainable growth," remarked Abdulla Belhoul, the Chief Executive Officer of Tecom Group.
"Tecom Group is committed to continuing its pivotal role in bolstering the UAE's and Dubai's knowledge-based economy and shaping the future of business through our world-class ecosystems that attract and empower globally renowned companies and talent across our ten specialised business districts," he stated.
"Dubai is a globally renowned business and investment hub that offers attractive economic opportunities and robust business frameworks for local and international investors across myriad sectors. Underpinned by Dubai Economic Agenda (D33), our business model is fostering an environment conducive to sustainable growth and excellence for the long term," he added.
Tecom Group has commenced the development of six Grade-A office buildings within Phase 2 of Dubai Design District (d3). The new development spans a gross floor area of 629,000 sq.ft. and represents a significant investment of AED825 million.
The Group also announced the launch of Grade-A offices at Dubai Internet City with Innovation Hub Phase 3, an AED340 million development that will address growing demand for high-quality commercial real estate in the city.
Set for completion in mid-2027, Innovation Hub Phase 3 will offer premium office spaces and headquarters tailored to customer specifications across a GLA of more than 167,000 sq.ft.
The acquisition of two operational Grade-A office buildings at Dubai Internet City has been completed through an AED420 million transaction that will add 334,000 sq.ft. of premium GLA to Tecom Group's commercial portfolio.
Aligned with Dubai's and the UAE's dynamic economic growth and transformative initiatives such as Operation 300bn, Make it in the Emirates, and D33, which are nurturing the industrial and logistics sectors, Dubai Industrial City is cementing its position as the premier destination for the manufacturing sector.
Tecom Group is addressing increased demand for its world-class portfolio by adding a land bank spanning 13.9 million sq.ft. for industrial leasing at Dubai Industrial City through an AED410 million transaction, raising its total managed land leasing portfolio to 179 million sq.ft.
Belhoul said the Group has continued to demonstrate solid performance across all business segments, driven by robust demand for its commercial and industrial assets from both existing and new customers and Dubai's continued economic growth, ability to attract greenfield FDI projects, and ease of doing business.
The new acquisitions significantly expand Tecom Group's portfolio, enabling its continued sustainable growth and further strengthening its strategic expansion plans, which are being funded through existing sources, including a revolving credit facility, he added.
