Dubai – Mubasher: The board of Tecom Group has approved a strategic acquisition and development plan valued at AED 1.70 billion, according to a press release.

Under the expansion plan, the UAE-based group will invest AED 966 million to acquire commercial and industrial assets from Dubai Holding Asset Management (DHAM) and earmark AED 689 million to develop grade A offices in Dubai Design District (d3).

The strategic acquisitions align with Tecom Group’s defined roadmap to achieve sustainable growth and deliver strong performance through strengthening its portfolio.

The investment plan will enable the company to anchor its position in developing integrated business ecosystems and boosting growth across key strategic sectors within Dubai.

Furthermore, it will unlock greater returns for shareholders over the mid to long-term.

Abdulla Belhoul, CEO of Tecom Group, said: “As we embark on our ambitious AED 1.70 billion strategic acquisitions and development plan, Tecom Group is well equipped and poised to capitalise on the unique opportunities that Dubai’s commercial real estate market offers.

“This plan is not just an expansion of our asset base, it is a strategic move to harness favourable market dynamics and drive our vision forward, reinforcing our commitment to Dubai and the UAE’s growth and will unlock greater value for our shareholders and other key stakeholders,” Belhoul noted.

He indicated: “This expansionary plan is perfectly aligned with a key pillar of our growth strategy which is tapping new sources of growth to expand our offerings and boost our portfolio value.”

“Expanding through acquisitions has always been a crucial lever to help accelerate our growth ambitions and cater to evolving market dynamics,” the CEO added.

In the first quarter (Q1) of 2024, the net profits of Tecom Group increased by 15% year-on-year (YoY) to AED 293 million from AED 255 million.