TECOM Group, the creator of specialised business districts in Dubai, has announced the completion of its AED1.7 billion strategic acquisition plan alongside the development of new office spaces worth AED340 million at Dubai Internet City.
This expansion brings the company’s total 2024 investments to over AED2 billion.
The strategic move increases TECOM Group’s portfolio to exceed 10 million square feet of gross leasable area (GLA) in commercial assets and 179 million square feet in land leasing, further reinforcing the company’s position in Dubai’s commercial and industrial real estate market.
“The new strategic acquisitions and projects worth AED2 billion reflect TECOM Group’s vision of fostering sustainable growth,” Abdulla Belhoul, Chief Executive Officer of TECOM Group said.
“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 10 specialised business districts,” he added.
TECOM Group’s Phase 2 expansion in d3
As part of its expansion, TECOM Group has initiated the development of six Grade-A office buildings within Phase 2 of Dubai Design District (d3).
This AED825 million project spans 629,000 square feet of gross floor area and is slated for completion by H1 2028. The development will feature office spaces with views of the Dubai skyline, including the Burj Khalifa.
“Phase 2 of Dubai Design District (d3) is a landmark development that will significantly contribute to Dubai’s thriving design, fashion, and creative sectors. Spanning a GLA of more than 500,000 sq.ft., this new office space will be built in line with LEED certification standards and is set for completion by H1 2028. It promises to deliver substantial long-term growth and further elevate our design sector’s infrastructure, enabling d3 to attract global talent and solidify Dubai’s position as a premier global centre for culture and creativity,” Belhoul added.
TECOM’s expansion in Dubai Internet City
At Dubai Internet City, TECOM Group is launching Innovation Hub Phase 3, an AED340 million development offering over 167,000 square feet of GLA.
Set for completion in mid-2027, this project aims to address the growing demand for high-quality commercial real estate in the city.
The company has also acquired two operational Grade-A office buildings at Dubai Internet City through an AED420 million transaction, adding 334,000 square feet of premium GLA to its commercial portfolio.
To support industrial growth, TECOM Group has expanded its industrial portfolio by adding 13.9 million square feet of land for industrial leasing at Dubai Industrial City.
This AED410 million transaction raises the Group’s total managed land leasing portfolio to 179 million square feet.
TECOM Group reports that these expansions are funded through existing sources, including a revolving credit facility. The company asserts that it will maintain a healthy leverage and liquidity position post-transaction completion.
The Group’s expansion aligns with Dubai’s economic initiatives, including the Dubai Economic Agenda ‘D33’, Operation 300bn, and Make it in the Emirates. These projects aim to nurture the industrial and logistics sectors, cementing Dubai’s position as a global business and investment hub.
TECOM Group’s recent investments and acquisitions demonstrate its commitment to sustainable growth and its role in shaping Dubai’s business landscape.
“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,” Belhoul said.
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