Tecom Group, the creator of specialised business districts and vibrant communities, has approved funds worth AED1.6 billion ($436 million) to acquire 138 land plots spanning 33 million sq.ft, at Dubai Industrial City, thus supporting robust and growing customer demand in the industrial sector.
This comes following Tecom’s acquisition of 13.9 million sq ft of land in Dubai Industrial City last year, which has been fully leased out to leading customers across six vital sectors served by the district, such as food and beverage (F&B), base metals, and transport, said a statement from Tecom.
With this move, the Group’s total investments across its commercial and industrial portfolio has now risen to AED4.3 billion since 2024.
Established in 2004, Dubai Industrial City is a part of Tecom Group and the region’s leading manufacturing and logistics hub for homegrown, regional, and global customers as well as 350+ operational factories.
Dubai Industrial City is currently operating at an occupancy level of 99% - including land plots acquired last year - amid accelerated growth in the UAE’s and Dubai’s manufacturing sector, driven by Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda ‘D33’.
The acquisition of these plots from Dubai Holding Asset Management will help bolster Tecom's land portfolio to exceed 209 million sq ft, thus strengthening Dubai Industrial City’s appeal to manufacturing and logistics companies and enhancing its ability to meet the growing needs of its existing and new customers, said its top official.
"This strategic acquisition demonstrates Tecom Group's role as a major contributor in the industrial sector in both the UAE and Dubai," remarked Abdulla Belhoul, the CEO of Tecom Group.
"Led by robust macroeconomic fundamentals and long-term strategies such as the Comprehensive Economic Partnership Agreement (CEPA) framework, our nation is cementing its role as a global hub for foreign direct investment. This strategic acquisition reaffirms Dubai Industrial City’s significant role in advancing the country’s manufacturing sector and serving growing demand from existing and new customers," he stated.
"With a future-focused strategy underpinned by our healthy liquidity, we are leveraging favourable market dynamics and actively investing towards growing our world-class portfolio of industrial assets with the aim of unlocking greater long-term value for our shareholders," he added.
According to him, this strategic expansion, executed by the Group’s subsidiary, Dubai Industrial City, reflects growing demand for industrial assets.
Tecom Group will be financing the new acquisition through its existing resources based on a flexible repayment schedule and start to recognise revenue from the additional land bank within the next 12-24 months.
Following the completion of the new acquisition, the Group will continue to maintain a healthy leverage and liquidity position, he added.-TradeArabia News Service