TECOM Group Commits AED 1.7 Billion to Strategic Initiatives, Entering New Growth Phase

16 May 2024
TECOM Group Commits AED 1.7 Billion to Strategic Initiatives, Entering New Growth Phase

TECOM Group PJSC Approves Strategic Acquisition and Development Plan

Board Approval

Following a board meeting held earlier today, TECOM Group PJSC (DFM: TECOM), the creator of strategic, sector-focused business districts across Dubai, and a major contributor to the city’s rapid economic growth, has approved a Strategic Acquisition and Development Plan.

Investment Details

The expansion plan involves TECOM Group investing AED 966 million to acquire commercial and industrial assets from Dubai Holding Asset Management (“DHAM”) and earmarking AED 689 million for developing grade A offices in Dubai Design District (“d3”).

Strategic Alignment

These strategic acquisitions align with the Group’s clearly defined roadmap to achieve sustainable growth and continue delivering strong performance by strengthening its portfolio of flexible and high-quality commercial and industrial assets.

Vision Statement

Abdulla Belhoul, Chief Executive Officer of TECOM Group, stated, “TECOM Group is well equipped and poised to capitalize on the unique opportunities that Dubai’s commercial real estate market offers. This plan is not just an expansion of our asset base, it is a strategic move to harness favorable market dynamics and drive our vision forward, reinforcing our commitment to Dubai and the UAE’s growth and unlocking greater value for our shareholders and other key stakeholders.”

Growth Strategy

Belhoul emphasized the importance of tapping new sources of growth to expand offerings and boost portfolio value, highlighting that expanding through acquisitions has always been a crucial lever to help accelerate growth ambitions and cater to evolving market dynamics.

Financial Management

Belhoul further added, “Thanks to our prudent financial management, optimized capital structure, and strong financial performance so far this year, we have the financial means to execute these deals while maintaining a healthy cash profile. We look forward to updating the market as we execute our growth agenda.“

Asset Details

The Strategic Acquisition and Development Plan includes the following assets:

  1. Dubai Internet City: TECOM Investment FZ LLC, a TECOM Group subsidiary, will acquire two grade A office buildings from DHAM with a combined value of AED 420 million. These buildings have a gross leasable area (“GLA”) of 334k sq. ft and a high occupancy level consisting of a loyal and quality customer base.
  2. Dubai Industrial City: The Group’s subsidiary, Dubai Industrial City LLC, will acquire several plots totaling 13.9 million sq. ft of strategically located, well-connected land from DHAM for a combined value of AED 410 million to enhance the Group’s land bank and satisfy robust and sustained demand for this asset type.
  3. Dubai Design District: Dubai Design District FZ LLC, another TECOM Group subsidiary, will acquire 629K sq. ft gross floor area (“GFA’) from DHAM for AED 136 million within “Design Quarter”, intending to develop 6 grade A office buildings with an expected total GLA of 503k sq. ft.

Market Conditions and Financial Impact

According to recent industry reports, Dubai’s office market continues to see strong occupier demand, driving average occupancy levels to 93% in Q4 2023. The planned value-accretive asset acquisitions are expected to yield a significant positive impact on the Group’s financial performance, supported by its solid financial position and ample liquidity.


TECOM Group’s Strategic Acquisition and Development Plan underscores its commitment to sustainable growth and value creation, positioning it well to capitalize on Dubai’s dynamic real estate landscape.