TECOM Group Expands with AED 720M Acquisition
TECOM Group strengthens its portfolio with the acquisition of Office Park in Dubai Internet City, enhancing its position in the commercial real estate sector.
Summary
TECOM Group has acquired Office Park in Dubai Internet City for AED 720 million, boosting its commercial asset portfolio and reinforcing its position in Dubai's real estate sector.
TECOM Group PJSC, a key player in Dubai's business landscape, has made a strategic acquisition that underscores its commitment to growth and leadership in the commercial real estate sector. The acquisition of Office Park, a Grade-A commercial asset located in Dubai Internet City, was completed for AED 720 million through its subsidiary, TECOM Investments FZ LLC. This move aligns with TECOM Group's strategy to expand its portfolio and tap into new growth opportunities.
Office Park's prime location in Dubai Internet City, a leading tech hub, complements TECOM Group's existing assets and enhances its ability to meet the increasing demand for premium commercial real estate in Dubai. This acquisition brings TECOM Group's total investments in commercial and industrial assets in 2024 to over AED 2.7 billion, highlighting its aggressive expansion strategy.
Abdulla Belhoul, CEO of TECOM Group PJSC, emphasized the significance of this acquisition in reinforcing the Group's leading position in Dubai's commercial real estate sector. He noted that Dubai continues to outperform global peers, driven by robust economic fundamentals and long-term strategies like the Dubai Economic Agenda 'D33'. As a global economic and commercial center, Dubai attracts new businesses and talent, positioning TECOM Group to meet current and future demands effectively.
The acquisition of Office Park is expected to have an immediate positive impact on TECOM Group's financial performance, offering promising sustainable yields and value creation. With its strong customer base and strategic location, Office Park is set to enhance TECOM Group's portfolio value and address the strong demand for Grade-A commercial real estate in the region.
Given TECOM Group's strategic expansion and the promising outlook for Dubai's real estate market, investors might consider a buy recommendation for TECOM Group PJSC. The Group's proactive approach to growth and its robust financial performance position it well for future success.
Source
Summary
TECOM Group PJSC, through its subsidiary TECOM Investments FZ LLC, has acquired Office Park in Dubai Internet City from Emirates REIT for AED 720 million. This acquisition is part of TECOM Group's strategy to expand its portfolio of Grade-A commercial assets and reinforces its position in Dubai's commercial real estate sector. The acquisition increases the Group's total investments in commercial and industrial assets to over AED 2.7 billion in 2024. Office Park's strategic location in a prominent tech hub and its strong customer base are expected to positively impact TECOM Group's financial performance and offer sustainable growth opportunities. TECOM Group CEO Abdulla Belhoul highlighted the acquisition as a step towards addressing the demand for premium commercial real estate in Dubai, supporting the city's growth as a global economic center.
