TECOM Group Acquires Dubai Internet City Office Park for AED 720 Million

Photo : Dubai government media office

TECOM Group PJSC (DFM: TECOM), a leading developer of specialized business districts and vibrant communities, has successfully completed the acquisition of Office Park from Emirates REIT for AED 720 million through its subsidiary, TECOM Investments FZ LLC. This strategic move enhances TECOM Group’s portfolio of premium commercial assets and strengthens its leadership position in Dubai’s thriving commercial real estate market.

Located in Dubai Internet City, a prominent technology hub and part of TECOM Group’s ecosystem, Office Park underscores the Group's commitment to sustainable growth and financial performance through strategic portfolio expansion. With this acquisition, TECOM Group's total asset investments for 2024 exceed AED 2.7 billion. The addition of Office Park, a prime Grade-A commercial property, is expected to positively impact the Group's financial results while offering promising sustainable yields and value creation opportunities.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel 

Abdulla Belhoul, Chief Executive Officer of TECOM Group PJSC, remarked, “The acquisition of Office Park builds on TECOM Group’s strategic role in enabling Dubai’s business landscape. It confirms the Group’s leading position in the city’s commercial real estate sector, which continues to outperform global peers.” Belhoul highlighted that TECOM Group's strong operational and financial performance allows it to meet the increasing demand for Grade-A commercial and industrial assets. He noted that the city's robust economic fundamentals and long-term strategies, such as the Dubai Economic Agenda ‘D33’, position Dubai well for continued growth. “Dubai as a global economic and commercial center continues to attract new businesses and talent, and we are perfectly positioned to meet current and future demand,” he added.

The acquisition aligns with TECOM Group’s strategy to identify and acquire high-quality commercial real estate assets, tapping into new growth sources and increasing portfolio value amidst strong demand for Grade-A commercial spaces in Dubai. Office Park consists of five interconnected blocks with a total Gross Leasable Area (GLA) of 370,761 square feet, showcasing a modern architectural design. The property offers stunning views of Dubai’s shoreline, including Palm Jumeirah, and boasts an impressive 88% occupancy rate. It serves as a strategic hub for major global companies, including Coca-Cola, Uber, and Red Hat.

Currently, Office Park generates over AED 60 million in annual revenue, with TECOM Group set to recognize this income starting in Q4 2024. There are significant opportunities to optimize rental rates and improve occupancy levels, which could yield higher returns. Long-term lease agreements exceeding two years ensure a stable income stream. The property includes office spaces, retail areas, and distinguished dining options, and is equipped with more than 800 parking spaces, enhancing convenience for customers and visitors.

TECOM Group continues to maintain a robust financial position, characterized by favorable leverage ratios, liquidity, and advantageous credit terms that enhance its capability to pursue strategic acquisitions and capitalize on growth opportunities. The acquisition was financed through TECOM Group’s internal resources and available credit facilities. The Group has complied with all relevant market regulations and governance standards, adhering to internationally recognized best practices throughout the acquisition process.