Tecom unlocks Dhs2 billion in growth opportunities

Tecom Group has completed the acquisition of new commercial and industrial assets as part of an Dhs1.7 billion strategic plan that was announced in May 2024.

This milestone is in conjunction with Tecom  Group’s announcement to develop premium Grade-A office spaces worth Dhs340 million at Dubai Internet City with the launch of Innovation Hub Phase 3, bringing the total value of the Group’s investments in 2024 to more than Dhs2 billion.

The strategic plan raises TECOM Group’s portfolio of high-quality commercial assets to exceed 10 million sq.ft. of gross leasable area (GLA) and its land leasing portfolio to 179 million sq.ft., reinforcing its role as a strategic driver in Dubai’s business sector and its leading position at the forefront of the commercial and industrial real estate market.

“The new strategic acquisitions and projects worth Dhs2 billion reflect TECOM Group’s vision of fostering sustainable growth,” said Abdulla Belhoul, Chief Executive Officer of Tecom  Group. “Tecom  Group is committed to continuing its pivotal role in bolstering the UAE’s and Dubai’s knowledge-based economy and shaping the future of business through our world-class ecosystems that attract and empower globally renowned companies and talent across our ten specialised business districts.

“Dubai is a globally renowned business and investment hub that offers attractive economic opportunities and robust business frameworks for local and international investors across myriad sectors. Underpinned by Dubai Economic Agenda (D33), our business model is fostering an environment conducive to sustainable growth and excellence for the long term.”

Tecom Group has commenced the development of six Grade-A office buildings within Phase 2 of Dubai Design District (d3). The new development spans a gross floor area of 629,000 sq.ft. and represents a significant investment of Dhs825 million.

The Group announced the launch of Grade-A offices at Dubai Internet City with Innovation Hub Phase 3, an Dhs340 million development that will address growing demand for high-quality commercial real estate in the city.

Set for completion in mid-2027, Innovation Hub Phase 3 will offer premium office spaces and headquarters tailored to customer specifications across a GLA of more than 167,000 sq.ft.

The acquisition of two operational Grade-A office buildings at Dubai Internet City has been completed through an AED420 million transaction that will add 334,000 sq.ft. of premium GLA to TECOM Group’s commercial portfolio.

Aligned with Dubai’s and the UAE’s dynamic economic growth and transformative initiatives such as Operation 300bn, Make it in the Emirates, and D33, which are nurturing the industrial and logistics sectors, Dubai Industrial City is cementing its position as the premier destination for the manufacturing sector.

Tecom  Group is addressing increased demand for its world-class portfolio by adding a land bank spanning 13.9 million sq.ft. for industrial leasing at Dubai Industrial City through an Dhs410 million transaction, raising its total managed land leasing portfolio to 179 million sq.ft.

The Group has continued to demonstrate solid performance across all business segments, driven by robust demand for its commercial and industrial assets from both existing and new customers and Dubai’s continued economic growth, ability to attract greenfield FDI projects, and ease of doing business.

The new acquisitions significantly expand Tecom  Group’s portfolio, enabling its continued sustainable growth and further strengthening its strategic expansion plans, which are being funded through existing sources, including a revolving credit facility.

EGA to acquire 80% of US recycling firm: Emirates Global Aluminium (EGA) today announced its intention to acquire 80 percent of the American aluminium recycling firm Spectro Alloys Corporation. The current owner-managers will retain a 20 percent shareholding.

EGA and Spectro Alloys have signed an equity purchase agreement and the transaction is expected to close during the third quarter of 2024.

The acquisition, which is subject to obtaining regulatory approvals, will accelerate EGA’s global expansion into aluminium recycling and expand EGA’s business in the United States.

In May, EGA acquired European speciality foundry Leichtmetall, and late last year, EGA began constructing the UAE’s largest aluminium recycling plant.

Abdulnasser bin Kalban, CEO of EGA, said, “EGA is the biggest ‘premium aluminium’ producer in the world and our goal is to grow further in both primary and recycled aluminium to meet the growing global demand for a metal which is essential for our world’s sustainable future. In the United States, which is already one of EGA’s largest global markets, this acquisition will significantly grow our business and expand our offering to customers with domestic production.

WAM