TECOM Group, the Dubai-based creator of specialized business districts and vibrant communities, has completed the acquisition of new commercial and industrial assets as part of its AED1.7 billion strategic plan that it announced in May 2024.
This milestone also comes as TECOM Group announces the development of premium Grade-A office spaces at Dubai Internet City, bringing the total value of the group’s investments in 2024 to more than AED2 billion ($544.5 million).
Commercial office space expansions
The AED1.7 billion strategic plan raises TECOM Group’s portfolio of high-quality commercial assets to over 10 million square feet of gross leasable area (GLA). Moreover, it raises its land leasing portfolio to 179 million square feet, restating its role as a strategic driver in Dubai’s business sector.
“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,” stated Abdulla Belhoul, CEO of TECOM Group.
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 the Dubai Design District. The new AED825 million development spans a gross floor area of 629,000 square feet.
TECOM Group also announced the launch of Grade-A offices at Dubai Internet City with Innovation Hub Phase 3. With an investment of AED340 million, the development will address the growing demand for high-quality commercial real estate in the city.
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Key acquisitions
TECOM Group has also completed the acquisition of two operational Grade-A office buildings at Dubai Internet City. The AED 420 million transaction will add 334,000 square feet of premium GLA to the group’s commercial portfolio. The buildings enjoy a high occupancy rate with the support of regional and international companies, ensuring positive contributions to the group’s revenue stream from this year.
In addition, TECOM Group is addressing the rising demand for its world-class portfolio with the addition of a land bank spanning 13.9 million square feet for industrial leasing at Dubai Industrial City through an AED410 million transaction. This raised its total managed land leasing portfolio to 179 million square feet.
The additional land bank 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 globally.
TECOM Group has continued to demonstrate solid performance across all business segments with the support of robust demand for its commercial and industrial assets. Moreover, Dubai’s constant economic growth, ability to attract greenfield FDI projects, and ease of doing business, further support the group’s expansion.
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