TECOM Group, through its subsidiary TECOM Investments FZ LLC, has completed the acquisition of Office Park from Emirates REIT for AED720 million ($196.03 million), growing its portfolio of premium commercial assets and reinforcing its leading position at the forefront of Dubai’s commercial real estate sector.
Strategically located in Dubai Internet City, Office Park, the region’s leading tech hub and part of TECOM Group, showcases the group’s commitment to achieving strategic growth and healthy financial performance through the expansion of its asset portfolio. This acquisition brings TECOM Group’s asset investments in 2024 to over AED2.7 billion.
Financial performance boost
Office Park is a prime grade-A commercial asset that will have an immediate positive impact on the group’s financial performance. Moreover, it will also offer promising sustainable yield and value creation.
“The acquisition of Office Park builds on TECOM Group’s strategic role in enabling Dubai’s business landscape. It confirms the group’s leading position in the city’s commercial real estate sector, which continues to outperform global peers,” said Abdulla Belhoul, CEO of TECOM Group.
Belhoul explained that the group’s exceptional operational and financial performance allows it to actively address the demand for Grade-A commercial and industrial assets.
In addition, the acquisition of Office Park aligns with TECOM Group’s strategy to tap new sources of growth by increasing the value of its portfolio through the identification and acquisition of high-quality commercial real estate assets to leverage the strong, ongoing demand for grade-A commercial spaces in Dubai.
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Over AED60 million in revenues
Office Park comprises five interconnected blocks, spanning a total gross leasable area of 370,761 sq.ft. In addition, it features a modern design overlooking Dubai’s shoreline including Palm Jumeirah. The property boasts an impressive 88 percent occupancy rate and serves as a strategic hub for notable global firms such as Coca-Cola, Uber, and Red Hat.
Currently generating annual revenue exceeding AED60 million, TECOM Group will recognize this income starting Q4 2024. The group also has significant growth opportunities to optimize rental rates and improve occupancy levels, promising higher returns.
The group financed this acquisition through its internal financial resources and available credit facilities. Furthermore, it adhered to all market regulations and governance standards, following international best practices.
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