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Dubai business park operator TECOM Group's board has approved a plan to invest AED 1.7 billion ($463 million) in strategic projects as part of its expansion strategy.
The plan will involve TECOM investing AED 966 million to acquire commercial and industrial assets from Dubai Holding Asset Management (DHAM) and earmarking AED 689 million to develop offices in Dubai Design District.
The acquisitions will be funded from its existing resources with the option to tap into up to AED 3.2 billion from its existing revolving credit facility, which was refinanced in 2023 at more competitive financing terms.
The company, which is owned by the investment vehicle of Dubai's ruler, had also raised AED 1.7 billion from an IPO in 2022.
According to the plan:
- TECOM Investment FZ LLC, a subsidiary, will acquire two grade A office buildings from DHAM with a combined value of AED 420 million.
- Another subsidiary, Dubai Industrial City LLC, will acquire several plots from DHAM for a combined value of AED 410 million to enhance the group’s land bank.
- Dubai Design District FZ LLC, another subsidiary, will acquire 629K sq. ft gross floor area (“GFA’) from DHAM for AED 136 million within Design Quarter, a mixed-use development located in phase 2 of the creative district. The group intends to earmark AED 689 million to develop 6 grade A office buildings with an expected total GLA of 503k sq. ft.
(Writing by Brinda Darasha; editing by Seban Scaria)
