TECOM Group, the driving force behind Dubai's strategic business districts, has unveiled a significant investment plan valued at AED 1. 7 billion (approximately $463 million). This ambitious initiative is designed to propel the company into its next phase of growth and solidify its position as a leader in developing integrated business ecosystems.
The plan incorporates a two-pronged approach, focusing on strategic acquisitions and targeted development projects. TECOM will dedicate AED 966 million (around $263 million) to acquiring commercial and industrial assets from Dubai Holding Asset Management (DHAM). This acquisition will significantly bolster TECOM's portfolio and enhance its offerings across various sectors.
A key aspect of the acquisition strategy involves securing two high-performing, grade-A office buildings situated within Dubai Internet City. These buildings boast a combined value of AED 420 million (roughly $114 million) and enjoy high occupancy rates, attracting a loyal clientele of regional and international technology companies. This strategic move strengthens TECOM's presence within the thriving technology hub and positions them to capitalize on the ongoing demand for premium office space in the sector.
Furthermore, TECOM plans to invest AED 410 million (approximately $111 million) in acquiring several industrial land plots encompassing a total area of 13. 9 million square feet within Dubai Industrial City. This land acquisition significantly expands TECOM's land bank, providing them with the flexibility to cater to the evolving needs of industrial businesses seeking to establish a foothold in Dubai.
The investment plan doesn't solely focus on acquisitions. TECOM has allocated AED 689 million (around $187 million) towards the development of brand new, grade-A office buildings within Dubai Design District (d3). This development project, slated for completion by 2028, will encompass six buildings boasting a total gross leasable area of 503, 000 square feet. The project is strategically driven by the burgeoning demand for high-quality office space from businesses operating within the design, fashion, and creative industries.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, expressed his enthusiasm regarding the investment plan, highlighting its potential to leverage the unique opportunities presented by Dubai's commercial real estate market. He emphasized the company's commitment to expanding its offerings and maximizing portfolio value through the exploration of new growth avenues.
By implementing this strategic investment plan, TECOM Group is poised to solidify its position as a premier developer and operator of business districts within Dubai. The company's expansion into new sectors and its focus on acquiring high-performing assets position them to capitalize on the emirate's flourishing business environment.