Home Industry Construction Tecom invests Dhs1.7bn in strategic projects, move aligns with future plans As part of the plan, Tecom will invest Dhs966m to acquire commercial and industrial assets from Dubai Holding Asset Management by Neesha Salian May 15, 2024 Images: Tecom Group Tecom Group, the creator of strategic business districts in Dubai, has received board approval for its ‘Strategic Acquisition and Development Plan’. This ambitious plan, valued at Dhs1.7bn, supports the group’s efforts to enable sustainable growth and innovation within Dubai’s commercial real estate sector. As part of the plan, Tecom will invest Dhs966m to acquire commercial and industrial assets from Dubai Holding Asset Management (DHAM). This move aims to strengthen the group’s portfolio and enhance its position in key strategic sectors across Dubai. A further Dhs689m will be allocated to develop grade A offices in Dubai Design District. Abdulla Belhoul, CEO of Tecom Group, expressed optimism about the strategic plan. He said: “Tecom Group is well equipped to capitalise 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 favourable market dynamics and drive our vision forward.” He added, “Thanks to our prudent financial management, optimised 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.” Strategic asset acquisitions planned by Tecom Tecom Investment will acquire two grade A office buildings from DHAM with a combined value of Dhs420m. These buildings, situated in Dubai Internet City, have a gross leasable area of 334,000 square feet with a high occupancy level consisting of a customer base that includes leading regional and international tech companies. Dubai Industrial City will acquire several plots (with a total area of 13.9 million square feet) of strategically located industrial land for industrial leasing from DHAM for Dhs410m. These acquisitions will enhance the group’s land bank and cater to the growing demand for industrial assets in Dubai. Dubai Design District will acquire 629,000 square feet of gross floor area within the “Design Quarter” from DHAM for Dhs136m. Additionally, the group will develop six grade A office buildings in d3, catering to the increasing demand from the design, fashion, and creative industries. Factors supporting future growth Dubai’s office market continues to demonstrate strong occupier demand, with Tecom Group’s business districts maintaining high occupancy rates. The planned acquisitions are expected to yield a significant positive impact on the group’s financial performance. Tecom Group is well-funded for the planned transactions, with ample liquidity and the option to tap into existing revolving credit facilities. Our AED 1.7 billion strategic expansion plan reflects the continued upward trajectory of Dubai’s economy. We are committed to delivering sustainable value for our community of colleagues, customers, and shareholders, and this value-enhancing investment reinforces our supportive… pic.twitter.com/NCnoPcY1vq — TECOM Group (@TECOMGroupDubai) May 15, 2024 Q1 performance In recent news, the group announces its Q1 2024 results. Group revenue increased 10 per cent year-on-year (YoY) to Dhs564m driven by a record-high portfolio occupancy rate of 91 per cent driven by strong demand across all assets from existing and new customers. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 10 per cent YoY to Dhs439m with an EBITDA margin of 78 per cent, with the group continuing to focus on optimising operations. The group reported that the number of its customers crossed 11,000, resulting from strong customer retention across the business and the addition of new customers. Tags Construction Dubai Real Estate Tecom Group You might also like Mashreq Metro Station gets new name; more details here Scaling new heights: How AIX is redefining global investment opportunities Aldar unveils new luxe villa community on Yas island Abu Dhabi, Dubai launch unified parking permit system