Dubai: The Tecom Group is buying a multi-let commercial property in Dubai Internet City for Dh720 million, as the DFM-listed entity embarks on a massive investment program.
The ‘Office Park’ is a multi-let commercial asset with five interconnected blocks and a gross leasable area of 370,761 square feet. It already has 'leading international' entities as tenants, including Coca-Cola, Uber, Red Hat, and Ticketmaster.
As for Dubai Internet City, this is the second major transaction it has seen recently, with Abu Dhabi mega-developer Aldar buying an office building.
The Tecom deal was signed by Tecom Investments Emirates REIT, which was the owner of the asset. (The acquisition is subject to final approval at the Emirates REIT's upcoming extraordinary general meeting. Emirates REIT has had plans to divest some of its assets as part of a wider restructuring of its portfolio.)
Tecom had in May confirmed plans to spend up to Dh1.7 billion on adding to its office and commercial real estate assets in Internet City, Industrial City and Dubai Design District, among others.
Dubai's Grade A and Grade B office buildings are now seeing a rapid rental appreciation, coupled with a low availability of new space. This is also what's prompting major investments into ready properties with a committed tenant base.
