Tecom Group, a DFM-listed company, is starting a massive investment program that includes the purchase of a multi-let commercial property in Dubai Internet City for Dh720 million.
Five connected blocks make up the multi-let commercial asset known as “Office Park,” which has a gross leasable area of 370,761 square feet. ‘Leading international’ companies such as Coca-Cola, Uber, Red Hat, and Ticketmaster are already tenants.
This is the second significant deal that Dubai Internet City has seen recently; the first was the purchase of an office building by mega-developer Aldar of Abu Dhabi.
Tecom Investments Emirates REIT, the asset’s owner, signed the Tecom agreement. The acquisition is contingent upon final approval at the next extraordinary general meeting of the Emirates REIT. As part of a larger portfolio restructuring, Emirates REIT had planned to sell off a portion of its holdings.)
In May, Tecom announced that it would be investing up to Dh1.7 billion to expand its office and commercial real estate holdings in locations such as Dubai Design District, Industrial City, and Internet City.
The Grade A and Grade B office buildings in Dubai are currently experiencing a sharp increase in rental income in addition to a dearth of available new space. This is also the reason for the significant expenditures made in properties that are ready and have a stable tenant base.
