TECOM Group invests AED 2 billion in new strategic acquisitions and projects

TECOM Group (DFM: “TECOM”, “the Company” or “the Group”), which owns and operates business parks focused on vital sectors in Dubai, has completed the acquisition of new commercial and industrial assets as part of its AED 1.7 billion strategic expansion plan, which was announced in May this year.

This remarkable achievement comes in conjunction with the group’s announcement of the development of AED 340 million of premium office space in Dubai Internet City, through the launch of the third phase of the “Innovation Centre”.

This brings the total value of TECOM Group’s investments this year to over AED 2 billion, significantly enhancing its portfolio of Grade A commercial assets to over 10 million square feet of gross leasable area, in addition to growing its portfolio of leasable land to 179 million square feet, thus consolidating the Group’s prominent role as a strategic driver of the business sector and reflecting its leading position within the commercial real estate sector in Dubai.

Commenting on the announcement, Abdulla Belhoul, CEO of TECOM Group, said: “The new strategic acquisitions and projects worth AED 2 billion reflect the Group’s vision to enhance its sustainable growth and strong performance, while continuing its pivotal role in strengthening the knowledge-based economy of Dubai and the UAE, by shaping the future of business environments and providing all the necessary elements to attract the most prominent global and regional companies, enabling them to achieve growth, success and achieve their ambitions from the Group’s 10 specialised business clusters.”

Abdullah Belhoul said: “Dubai is a preferred global destination for companies and investors from all over the world, thanks to its strong economy and future vision that provides a suitable and attractive business environment for local and international investors in all sectors. The Group’s successful business strategy, which is in line with the objectives of the Dubai Economic Agenda D33, contributes to providing the best business environment for companies to achieve growth with a positive impact on the global level.”

Growth of commercial asset portfolio
New office spaces to be created as part of Phase 2 of Dubai Design District
Building on its prominent position as a leading destination for creating premium workspaces in Dubai, TECOM Group has completed the acquisition of a total floor area of ​​629,000 square feet to develop six Grade A office buildings within the second phase of Dubai Design District, with the total value of this investment reaching AED 825 million.

The project will feature premium green building-compliant office space with stunning views of the Dubai skyline, including Burj Khalifa. The project aims to cater to the needs of the group’s current and future clients, as well as the growing needs of the world’s most prominent creatives. The project will also include sports facilities, public spaces dedicated to creative and social activities, parking, a variety of fine dining restaurants and a distinctive promenade, providing the necessary services and facilities for the surrounding residential communities. This vibrant destination will contribute to attracting more clients, while enhancing the ability to find the ideal balance between social and professional life within this vibrant community.

Commenting on the launch of the project, Abdulla Belhoul added: “The second phase of d3 is one of our most prominent projects that will significantly contribute to the growth of Dubai’s thriving design, fashion and creative sectors. Through this project, we aspire to create new Grade A office spaces with a total leasable area of ​​more than 500,000 square feet, noting that this project is expected to be completed during the first half of 2028. This project will contribute to achieving significant growth in the long term and enhancing the business environment for the design sector in Dubai, in light of the increasing interest that d3 is receiving and its continuous efforts to attract the most prominent talents from around the world. In turn, the ambitious goals of the Dubai Economic Agenda D33 and the Dubai Creative Economy Strategy contribute to consolidating Dubai’s position as a leading global destination for culture and creativity.”

Creating premium office spaces in Dubai Internet City
The group has announced its intention to develop new Grade A office space worth AED 340 million in Dubai Internet City, through the launch of the third phase of the “Innovation Hub” to meet the growing demand for Grade A office space.
The third phase of the Innovation Hub, scheduled for completion in mid-2027, will provide premium office space and corporate headquarters designed to meet the needs of all clients across a total leasable area of ​​over 167,000 square feet. It is worth noting that the second phase of the Innovation Hub, which covers an area of ​​366,000 square feet, has been fully leased ahead of its scheduled handover date in early 2025, while the first phase continues to record full occupancy rates and includes regional headquarters for a selection of the most prominent technology companies around the world.

Acquisition of two existing buildings in Dubai Internet City
TECOM Group has completed a AED 420 million deal to acquire two existing Grade A office buildings in Dubai Internet City, adding 334,000 sq ft of premium office space to the group’s portfolio of commercial assets. The buildings are currently experiencing high occupancy rates driven by regional and international technology companies, ensuring they will contribute positively to the group’s revenue growth this year.

Industrial asset portfolio growth
Dubai Industrial City continues to consolidate its position as a leading destination for manufacturing sectors, based on its constant keenness to align its vision and efforts with the economic growth witnessed by Dubai and the UAE and the pioneering government strategies and initiatives, such as the “300 Billion Project”, the “Make in the Emirates” initiative and the Dubai Economic Agenda D33, which drive growth within the industrial sectors.

TECOM Group is seeking to meet the growing demand for its high-quality portfolio of assets by acquiring an additional 13.9 million square feet of industrial land in Dubai Industrial City through the completion of a deal worth AED 410 million, which contributes to growing its leasable land portfolio to 179 million square feet. These lands are expected to start generating revenue for TECOM Group within the next 12 months, as they are receiving strong interest from potential clients to sign long-term leases, which will consolidate Dubai Industrial City’s position as a leading destination in the region for customers in the manufacturing and logistics sectors from all over the world.

Strong pillars for continued growth
TECOM Group continues to deliver outstanding performance across all its business sectors, driven by growing demand for its commercial and industrial assets from both existing and new customers, as well as Dubai’s steady economic growth, driven by the influx of foreign investment and ease of doing business.

The new acquisitions significantly expand TECOM Group’s portfolio and enable it to achieve sustainable growth. The Group has a strong financial position and sufficient liquidity to enable it to finance the expansion plan, relying on its current resources, including available banking facilities.
The Group will continue to maintain its positive leverage and liquidity ratios after the completion of this transaction, with its strong financial position and competitive credit facilities providing it with the flexibility to seize strategic opportunities and achieve sustainable growth.