The Tecom Group has acquired new industrial and commercial real estate holdings in Dubai as part of a “strategic plan” worth Dh1.7 billion that was revealed in May of last year.
This was carried out concurrently with the start of Innovation Hub Phase 3, an initiative to create Grade-A office spaces in Dubai Internet City valued at Dh340 million. With this, Tecom’s investments will have totaled more than Dh2 billion by 2024.
By doing this, Tecom will be able to further expand its land leasing portfolio to 179 million square feet and its combined commercial asset portfolio to over 10 million square feet of gross leasable area (GLA),’ reinforcing its role as a strategic driver in Dubai’s business sector and its leading position at the forefront of the commercial and industrial real estate market’.
“The new strategic acquisitions and projects worth Dh2 billion reflect Tecom Group’s vision of fostering sustainable growth,” said Abdulla Belhoul, CEO.
The increased expenditure coincides with continued growth in the demand for commercial and industrial real estate. There haven’t been many openings in the city’s Grade A office space over the past year. Even before the project was finished, new offices were being snapped up, like those at the Uptown Dubai tower.
Where and what is Tecom spending on?
Six Grade A office buildings in Phase 2 of the Dubai Design District (d3) are currently under construction. This will cost Dh825 million and have a gross floor area of 629,000 square feet.
“Phase 2 of d3 is a landmark development that will significantly contribute to Dubai’s thriving design, fashion, and creative sectors,” said Belhoul.
The new offices will add up to gross leasable area of more than 500,000 square feet. It will be complete 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,” said Belhoul.
More offices in Internet City
The Innovation Hub Phase 3 project includes the new offices at Dubai Internet City, which are expected to be finished by mid-2027. More than 167,000 square feet will make up the GLA.
The inauguration and expansion of Innovation Hub’s Phase 2, which has a GLA of 366,000 square feet and is “fully leased ahead of its scheduled delivery date of early 2025,” comes shortly after.
In a deal worth Dh420 million, Tecom also purchased two fully functional Grade-A office buildings at Dubai Internet City, expanding the group’s commercial portfolio by 334,000 square feet of GLA. Due to the buildings’ current “high occupancy rate,” which is backed by both domestic and foreign businesses, they will “positively contribute to the group’s revenue stream from this year.”
Financing the new spending
“We will continue to maintain healthy leverage and liquidity position post transaction completion,” Tecom stated in a statement. Additionally, it says that its “solid financial position and improved credit terms” give it the adaptability required to “support future growth and seize strategic opportunities.”
