TECOM to buy commercial asset in Dubai Internet City for Dhs720m

Dubai business park operator TECOM Group said on Tuesday that it had signed an MOU to acquire a Grade-A commercial asset in Dubai Internet City for $196m (Dhs720m).

The commercial asset, Office Park, features five interconnected blocks arranged in an L-shape, offering a gross leasable area (GLA) of 370,761 square feet (sq. ft). TECOM said the facility has an occupancy rate of 88% and has a clientele that includes global giants like Coca-Cola, Uber, and Ticketmaster.

The business park operator has reinforced its leading position by offering premium-grade properties. The exceptional quality of its assets has attracted a loyal customer base, including prominent regional and international tech companies.

The commercial and industrial real estate market in Dubai is experiencing strong growth, resulting in higher occupancy rates and a significant increase in rental prices.

Earlier in August, TECOM completed the acquisition of new commercial and industrial assets as part of an ambitious Dhs1.7bn strategic plan unveiled in May 2024.

The group said it acquired two operational Grade-A office buildings at Dubai Internet City for Dhs420m, adding 334,000 sq. ft of premium GLA to its commercial portfolio. The buildings enjoy a high occupancy rate supported by regional and global firms, ensuring positive contributions to the group’s revenue stream from this year.

The acquisition coincides with TECOM’s move to develop premium Grade-A office spaces (Dhs340m) at Dubai Internet City with the launch of Innovation Hub Phase 3, bringing the total value of the group’s investments to more than Dhs2bn this year.

Innovation Hub Phase 3, set for completion in mid-2027, will offer flexible, high-quality office spaces and headquarters tailored to customer needs. The first phase of the Innovation Hub continues to be fully occupied and is home to the regional headquarters of global technology leaders.

Meanwhile, TECOM’s half-year net profit surged by 24 per cent year-on-year (YoY) to Dhs603m, driven by revenue growth, high occupancy rates, and efficient capital management.

The company’s revenues for the six months to June 30 rose by 9 per cent YoY to Dhs1.1bn, supported by occupancy rates that exceed 92 per cent and sustained growth in rental and occupancy rates.

Read: TECOM expands portfolio with Dhs1.7bn acquisition, new developments