Tecom Group, the developer of specialized business districts and dynamic communities, has finalized the acquisition of new commercial and industrial properties as part of a Dh1.7 billion strategic initiative announced in May 2024. This significant achievement aligns with Tecom Group’s commitment to construct premium Grade-A office spaces valued at Dh340 million in Dubai Internet City through the launch of Innovation Hub Phase 3, elevating the total investment in 2024 to over Dh2 billion. The strategic initiative enhances Tecom Group’s collection of high-quality commercial properties, surpassing 10 million sq ft of gross leasable area (GLA), and expands its land leasing portfolio to 179 million sq ft.
“The Dh2 billion worth of new strategic acquisitions and projects underscore Tecom Group’s commitment to sustainable growth,” stated Abdulla Belhoul, CEO of Tecom Group PJSC. “Tecom Group remains dedicated to its crucial role in strengthening the UAE’s and Dubai’s knowledge-based economy and shaping the future of business through our global ecosystems that attract and empower renowned companies and talent across our 10 specialized business districts. Dubai, a globally recognized business and investment hub, offers attractive economic opportunities and robust business frameworks for local and international investors across various sectors. Supported by the Dubai Economic Agenda ‘D33’, our business model fosters an environment conducive to sustainable growth and excellence for the long term.”
Tecom Group has initiated the construction of six Grade-A office buildings within Phase 2 of Dubai Design District (d3), representing a significant investment of Dh825 million and spanning a gross floor area of 629,000 sq ft. The development will feature office spaces with panoramic views of the Dubai skyline, including the Burj Khalifa, designed to meet the needs of existing and future clients in the creative sectors. The project will also include sports facilities, community spaces, ample parking, fine dining options, and an extended promenade, enhancing the surrounding residential developments. The vibrant hub aims to promote a balanced work-life environment within a dynamic community.
Commenting on the launch, Belhoul noted: “Phase 2 of Dubai Design District (d3) is a significant development that will greatly contribute to Dubai’s flourishing design, fashion, and creative sectors. Spanning over 500,000 sq ft of GLA, this new office space will be constructed according to LEED certification standards and is scheduled for completion by H1 2028. It promises substantial long-term growth and further elevates our design sector’s infrastructure, enabling d3 to attract global talent and solidify Dubai’s status as a premier global center for culture and creativity.”
Tecom Group also announced the launch of Grade-A offices at Dubai Internet City with Innovation Hub Phase 3, a Dh340 million development addressing the growing demand for high-quality commercial real estate. Scheduled for completion in mid-2027, Innovation Hub Phase 3 will offer premium office spaces and headquarters tailored to customer specifications across over 167,000 sq ft of GLA. The acquisition of two operational Grade-A office buildings at Dubai Internet City through a Dh420 million transaction adds 334,000 sq ft of premium GLA to Tecom Group’s commercial portfolio, ensuring positive contributions to the Group’s revenue stream.
In line with Dubai’s and the UAE’s economic growth initiatives, Tecom Group has expanded its industrial leasing portfolio at Dubai Industrial City through a Dh410 million transaction, adding 13.9 million sq ft of land. This addition raises the total managed land leasing portfolio to 179 million sq ft, attracting interest for long-term leasing, confirming Dubai Industrial City’s position as the region’s leading hub for manufacturing and logistics. Tecom Group continues to demonstrate robust performance across all business segments, driven by strong demand for its commercial and industrial assets and Dubai’s economic growth, attracting foreign direct investment projects and facilitating ease of doing business.
The new acquisitions significantly expand Tecom Group’s portfolio, enabling sustainable growth and strengthening strategic expansion plans, funded through existing sources, including a revolving credit facility. The Group will maintain a healthy leverage and liquidity position post-transaction, with its solid financial position and improved credit terms providing flexibility to seize strategic opportunities and support future growth.
