TECOM Group unlocks AED 2 billion in growth opportunities

TECOM Group has completed the acquisition of new commercial and industrial assets as part of an AED 1.7 billion strategic plan that was announced in May 2024.

It will also develop premium Grade-A office spaces worth AED 340 million at Dubai Internet City with the launch of Innovation Hub Phase 3, bringing the total value of the Group’s investments in 2024 to more than AED 2 billion.

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.

"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," said Abdulla Belhoul, Chief Executive Officer of TECOM Group.

.@TECOMGroupDubai unlocks AED 2 billion in growth opportunities with strategic acquisition closure and new development launch.#Dubai https://t.co/Fv1DXBK3Ra pic.twitter.com/3FgII616uo

— Dubai Media Office (@DXBMediaOffice) August 22, 2024

Commercial office space expansion

Reaffirming its leading position as the developer of premium workspaces in the city, 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 AED 825 million.

The development is designed to meet the needs of TECOM Group’s existing and future clients and will accommodate growing customer demand, including from top-tier global companies, in the creative sectors.

In addition to its sustainable buildings, the project will also include sports facilities, community spaces, ample parking, fine dining options, and an extended promenade, complementing the surrounding residential developments.

Meanwhile, TECOM Group's Innovation Hub Phase 3 at Dubai Internet City is set for completion in mid-2027. It will offer premium office spaces and headquarters tailored to customer specifications across a GLA of more than 167,000 sq.ft.

The development follows Phase 2 of Innovation Hub, which offers a GLA of 366,000 sq.ft. and has been fully leased ahead of its scheduled delivery date of early-2025.

Phase 1 of Innovation Hub continues to achieve full occupancy, serving as the regional headquarters for technology sector leaders from around the world.

Acquisition of two operational buildings at Dubai Internet City

The acquisition of two operational Grade-A office buildings at Dubai Internet City has been completed through an AED 420 million transaction that will add 334,000 sq.ft. of premium GLA to TECOM Group’s commercial portfolio.

The buildings enjoy a high occupancy rate supported by regional and international companies, ensuring positive contributions to the Group’s revenue stream from this year.

Industrial portfolio grows

TECOM Group is addressing increased demand for its world-class portfolio with the addition of a land bank spanning 13.9 million sq.ft. for industrial leasing at Dubai Industrial City through an AED 410 million transaction, raising its total managed land leasing portfolio to 179 million sq.ft.

The additional land bank, for which the Group will start to recognise revenues within the course of the next 12 months, is attracting interest for long-term leasing purposes, confirming Dubai Industrial City’s position as the region’s leading hub for manufacturing and logistics customers from around the world.

Strong fundamentals

TECOM 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 the 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.