TECOM Group has expanded its portfolio with a landmark acquisition. Through its subsidiary, TECOM Investments FZ LLC, the Group has completed the purchase of Office Park from Emirates REIT for $195 million (AED 720 million).
Located in Dubai Internet City, one of the region’s leading technology hubs and part of TECOM Group’s expansive portfolio, Office Park is a Grade-A commercial property. With this latest acquisition, TECOM Group has now invested over $736 million (AED 2.7 billion) in commercial real estate assets in 2024, reinforcing its commitment to the city’s long-term growth.
The acquisition of Office Park strengthens TECOM Group’s position as a leading player in Dubai’s commercial real estate market, which continues to outperform its global counterparts. According to Abdulla Belhoul, CEO of TECOM Group PJSC, the move signals TECOM’s strategic role in shaping Dubai’s business landscape and meeting the demand for premium commercial spaces.
“The acquisition of Office Park builds on TECOM Group’s strategic role in enabling Dubai’s business landscape,” Belhoul said. “It confirms the Group’s leading position in the city’s commercial real estate sector, which continues to outperform global peers. Dubai, as a global economic and commercial hub, is well-positioned for further growth, and we are perfectly positioned to meet the increasing demand for Grade-A commercial and industrial assets.”
With its strategic location, modern design, and prestigious tenants, Office Park enhances TECOM Group’s ability to capitalise on the growing demand for high-quality commercial spaces in Dubai. The property boasts a Gross Leasable Area (GLA) of 370,761 sq. ft., with a current occupancy rate of 88%, making it an attractive asset in the Group’s expanding portfolio.
Office Park’s prime location in Dubai Internet City, combined with its modern facilities and breathtaking views of Dubai’s iconic skyline, has already attracted global firms such as Coca-Cola, Uber, and Red Hat. The property features five interconnected blocks and a mixed-use design, offering not only office spaces but also retail outlets and distinguished restaurants, making it a central hub for businesses and professionals in the city.
Key highlights of Office Park include:
- Annual revenue exceeding $17 million (AED 60 million), with TECOM Group set to recognise this income starting from Q4 2024.
- Long-term lease commitments from top-tier tenants, ensuring a steady income stream.
- Opportunities to optimise rental rates and increase occupancy levels, leading to higher returns.
- Over 800 parking spaces, adding convenience for both tenants and visitors.
The acquisition aligns with TECOM Group’s broader strategy of tapping into new growth opportunities by acquiring high-quality commercial real estate assets. This move not only leverages Dubai’s strong demand for Grade-A spaces but also positions the Group to capture further market share in the booming commercial real estate sector.