TECOM Acquires New Assets Valued $460 Million

TECOM Group, the creator of specialised business districts and vibrant communities in Dubai, on Thursday said that it has completed the acquisition of new commercial and industrial assets as part of an $460 million strategic plan that was announced in May 2024.

This milestone is in conjunction with TECOM Group’s announcement to develop premium Grade-A office spaces worth $92.57 million at Dubai Internet City with the launch of Innovation Hub Phase 3, bringing the total value of Group’s investments in 2024 to more than $544 million.

The strategic plan raises TECOM Group’s portfolio of high-quality commercial assets to exceed 10 million sq. ft. of gross leasable area (GLA) and its land leasing portfolio to 179 million sq. ft., 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.

TECOM CEO Abdulla Belhoul said that this new strategic acquisitions and projects worth $544 million reflected TECOM Group’s vision of fostering sustainable growth.

The company is committed to continuing its pivotal role in bolstering the UAE’s and Dubai’s knowledge-based economy and shaping the future of business through its world-class ecosystems that attract and empower globally renowned companies and talent across their 10 specialised business districts, he said.

“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,” he added.

Six New Buildings

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 Dubai Design District (d3). The new development spans a gross floor area of 629,000 sq. ft. representing a significant investment of $224.62 million.

The development will feature office spaces with stunning views of the Dubai skyline, including the iconic Burj Khalifa. It is designed to meet the needs of TECOM Group’s existing and future clients and will accommodate growing customer demand, including from top-tier global companies, in the creative sectors.

In addition to its sustainable buildings, the project will also include sports facilities, community spaces, ample parking, fine dining options, and an extended promenade, complementing the surrounding residential developments.

Abdulla Belhoul said that d3 is a landmark development that will significantly contribute to Dubai’s thriving design, fashion, and creative sectors. Spanning a GLA of more than 500,000 sq. ft., this new office space will be built in line with LEED certification standards and is set for completion 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, he said.

TECOM Group also announced the launch of Grade-A offices at Dubai Internet City (DIC) with Innovation Hub Phase 3, an $92.57 million development that will address growing demand for high-quality commercial real estate in the city. Set for completion in mid-2027, Innovation Hub Phase 3 will offer premium office spaces and headquarters tailored to customer specifications across a GLA of more than 167,000 sq. ft.

TECOM also acquired two operational Grade-A office buildings at Dubai Internet City for $114.35 million and this will add 334,000 sq. ft. of premium GLA to TECOM Group’s commercial portfolio.

Industrial Portfolio

Aligned with Dubai’s and the UAE’s dynamic economic growth and transformative initiatives such as “Operation 300bn,” “Make it in the Emirates,” and Dubai Economic Agenda ‘D33’ that were nurturing the industrial and logistics sectors, Dubai Industrial City is cementing its position as the premier destination for the manufacturing sector.

TECOM Group is addressing increased demand for its world-class portfolio with the addition of a land bank spanning 13.9 million sq. ft. for industrial leasing at Dubai Industrial City through an $111.63 million transaction, raising its total managed land leasing portfolio to 179 million sq. ft.

The additional land bank, for which the Group will start to recognise revenues within the course of the next 12 months, 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 from around the world.