Tecom Group, a major contributor to Dubai’s knowledge-based economy, has approved a strategic acquisition and development plan. The plan involves a total investment of Dh1.7 billion, with Dh966 million allocated for acquiring commercial and industrial assets and Dh689 million dedicated to developing grade A offices in Dubai Design District. This move aims to strengthen the Group’s portfolio and enhance its position in key strategic sectors within Dubai.
Abdulla Belhoul, CEO of Tecom Group, expressed confidence in the plan, stating that it aligns with the group’s growth strategy of tapping into new sources of growth. The expansion plan includes acquiring operational grade A office space buildings in Dubai Internet City and industrial land in Dubai Industrial City. The development of future grade A office spaces in d3 is also a part of the plan, targeting high demand from customers in the design and creative industries.
The market conditions in Dubai remain conducive for such acquisitions, with strong occupier demand driving up average occupancy levels. The office market saw 93 percent average occupancy in Q4 2023, with Tecom Group’s business districts reaching 91 percent occupancy. The industrial segment is also witnessing robust growth, leading to higher occupancy rates and rental rates.
The planned acquisitions are expected to have a positive impact on the Group’s financial performance, attracting new customers and diversifying the customer base while maintaining healthy EBITDA margins. The Group is well-funded for the expansion plan, with solid financial performance and ample liquidity. They have the option to tap into existing credit facilities if needed.
Overall, Tecom Group’s strategic acquisitions and development plan signal a strong commitment to growth and innovation in Dubai’s business landscape. By investing in premium office spaces and industrial assets, the Group aims to strengthen its position as a leading developer of integrated business ecosystems. With a focus on sustainable growth and value creation for stakeholders, Tecom Group is poised to capitalize on the unique opportunities offered by Dubai’s commercial real estate market.
