TECOM Group Fuels AED2 Billion In Growth With Strategic Investments

TECOM Group has finalised the acquisition of new commercial and industrial assets, part of an AED1.7 billion strategic plan announced in May 2024. This development aligns with TECOM Group's announcement to create premium Grade-A office spaces worth AED340 million at Dubai Internet City through Innovation Hub Phase 3, bringing the Group's total investments in 2024 to over AED2 billion.

The strategic plan increases TECOM Group's portfolio of high-quality commercial assets to over 10 million sq.ft. of gross leasable area (GLA) and its land leasing portfolio to 179 million sq.ft. This expansion reinforces its role as a key player in Dubai's business sector and strengthens its leading position in 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," said Abdulla Belhoul, 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."

TECOM Group has started developing six Grade-A office buildings within Phase 2 of Dubai Design District (d3). This new development covers a gross floor area of 629,000 sq.ft. and represents a significant investment of AED825 million.

The launch of Grade-A offices at Dubai Internet City with Innovation Hub Phase 3 is an AED340 million project addressing the growing demand for high-quality commercial real estate in the city. Set for completion by mid-2027, Innovation Hub Phase 3 will offer premium office spaces and headquarters tailored to customer specifications across a GLA exceeding 167,000 sq.ft.

Strategic Acquisitions at Dubai Internet City

The acquisition of two operational Grade-A office buildings at Dubai Internet City has been completed through an AED420 million transaction. This addition will contribute 334,000 sq.ft. of premium GLA to TECOM Group's commercial portfolio.

Aligned with Dubai's dynamic economic growth initiatives such as Operation 300bn, Make it in the Emirates, and D33, which nurture the industrial and logistics sectors, Dubai Industrial City is solidifying its position as the premier destination for manufacturing.

Enhancing Industrial Leasing Portfolio

To meet increased demand for its world-class portfolio, TECOM Group has added a land bank spanning 13.9 million sq.ft. for industrial leasing at Dubai Industrial City through an AED410 million transaction. This raises its total managed land leasing portfolio to 179 million sq.ft.

The Group continues to demonstrate strong performance across all business segments, driven by robust demand for its commercial and industrial assets from both existing and new customers. Additionally, Dubai's ongoing economic growth, ability to attract greenfield FDI projects, and ease of doing business contribute significantly.

The new acquisitions substantially expand TECOM Group's portfolio, enabling continued sustainable growth while further strengthening its strategic expansion plans funded through existing sources, including a revolving credit facility.

With inputs from WAM