TECOM Signs MOU Buys Asset In Dubai Internet City

TECOM Group, the creator of specialised business districts and vibrant communities, on Tuesday said that it has signed a Memorandum of Understanding (MOU), yesterday, to acquire a strategically located multi-let commercial asset in Dubai Internet City for of $196.03 million.

The agreement has been signed between TECOM Investments FZ LLC, a subsidiary of TECOM Group, and Emirates REIT, the owner of the asset. The acquisition is subject to final approval at the Emirates REIT’s upcoming Extraordinary General Meeting (EGM), TECOM informed Dubai Financial Market (DFM) where its shares are traded, this morning.

Strategically positioned within the region’s largest tech hub, ‘Office Park’ features five inter-connected blocks arranged in an L-shape, offering a Gross Leasable Area (GLA) of 370,761 sq. ft.

The asset was extensively refurbished recently and currently enjoys an impressive 88% occupancy rate, with a customer mix that includes prominent global companies such as Coca-Cola, Uber, Red Hat, and Ticketmaster.

The Dubai commercial and industrial real estate segment continues to demonstrate robust growth, which is driving occupancy rates higher and leading to a notable increase in rental rates.

TECOM Group through its offering of Grade-A assets has reinforced its leading position at the forefront of the sector with the quality of its properties having created a loyal customer base that includes leading regional and international tech companies.

Reaffirming its leading position as the developer of premium workspaces in the city, TECOM Group has also 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. and represents a significant investment of $224.61 million.

Other Acquisitions

It may be recalled that in August this year, TECOM Group 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 $540 million.

The strategic plan raises TECOM Group’s portfolio of high-quality commercial assets to exceed 10 million sq. ft. of 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.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said that 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, TECOM, he said in August.