TECOM Group Unveils AED 2 Billion Growth Opportunities with New Acquisition and Development

Photo : Dubai Government Media Office

TECOM Group PJSC (DFM: TECOM), renowned for its creation of specialized business districts and vibrant communities, has achieved a significant milestone by completing the acquisition of new commercial and industrial assets. This move is part of an ambitious AED 1.7 billion strategic plan announced in May 2024.

This development also includes the launch of premium Grade-A office spaces worth AED 340 million at Dubai Internet City with the introduction of Innovation Hub Phase 3. With these new investments, TECOM Group’s total investments in 2024 now exceed AED 2 billion.

The strategic acquisitions and new projects elevate 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 reinforces TECOM Group’s pivotal role in Dubai’s business landscape and its leading position in the commercial and industrial real estate markets.

Expansion and Development Highlights

Abdulla Belhoul, Chief Executive Officer of TECOM Group PJSC, commented on the achievements: “The new strategic acquisitions and projects worth AED 2 billion reflect TECOM Group's vision for sustainable growth. Our commitment to supporting the UAE's and Dubai’s knowledge-based economy continues as we develop world-class ecosystems that attract and empower global companies and talent.”

Commercial Office Space Expansion

TECOM Group is advancing its position as a premier developer of high-quality workspaces with the commencement of Phase 2 of Dubai Design District (d3). This new development includes six Grade-A office buildings with a total gross floor area of 629,000 sq.ft., representing an investment of AED 825 million. The project will feature office spaces with panoramic views of Dubai, including the iconic Burj Khalifa, and will cater to growing demand from top global companies in the creative sector. The development will include sustainable buildings, sports facilities, community spaces, parking, dining options, and an extended promenade, all designed to promote a balanced work-life environment. Expected to be completed by the first half of 2028, this development aligns with LEED certification standards and aims to bolster Dubai’s design, fashion, and creative sectors.

Grade-A Office Spaces at Dubai Internet City

The launch of Innovation Hub Phase 3 at Dubai Internet City, an AED 340 million development, will address the growing need for high-quality commercial real estate. This phase will offer premium office spaces and headquarters across more than 167,000 sq.ft. of GLA and is set for completion by mid-2027. It follows the successful leasing of Phase 2 of Innovation Hub, which has 366,000 sq.ft. of GLA and has been fully leased ahead of its early 2025 delivery date. Phase 1 remains fully occupied, serving as the regional headquarters for global technology leaders.

Acquisition of Operational Buildings

TECOM Group has also acquired two operational Grade-A office buildings at Dubai Internet City in an AED 420 million transaction. This acquisition adds 334,000 sq.ft. of premium GLA to the Group’s commercial portfolio, with the buildings enjoying high occupancy rates from regional and international companies, contributing positively to TECOM’s revenue stream.

Industrial Portfolio Growth

In response to Dubai’s and the UAE’s economic growth and transformative initiatives such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda ‘D33’, TECOM Group has expanded its industrial portfolio. The acquisition of an additional 13.9 million sq.ft. of land for industrial leasing at Dubai Industrial City, valued at AED 410 million, raises the total managed land leasing portfolio to 179 million sq.ft. This addition, expected to start generating revenue within the next 12 months, supports Dubai Industrial City’s position as a premier hub for manufacturing and logistics.

Strong Fundamentals

TECOM Group’s solid performance across its business segments is driven by strong demand for its assets and Dubai’s continued economic growth. The Group’s new acquisitions bolster its strategic expansion plans and are funded through existing sources, including a revolving credit facility. TECOM Group will maintain a robust financial position and leverage to support future growth and seize strategic opportunities.

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