2024-05-15 16:38:00
The TECOM group introduced the approval by the board of administrators of a strategic acquisition and growth plan, throughout the board assembly held yesterday. As a part of the built-in plan, the TECOM Group will make investments 966 million dirhams to accumulate a set of business and industrial belongings from Dubai Holding Asset Administration (DHIM), along with allocating an quantity of 689 million dirhams to develop new prime workplace house in Dubai.
These strategic acquisitions are a part of the group’s clear and outlined growth plan to attain sustainable development and keep robust efficiency, by strengthening its portfolio of versatile, high-quality business and industrial belongings and including new sources of sustainable income to assist its continued development. development, thereby consolidating the group’s main place within the creating built-in and strategic enterprise environments in Dubai, in addition to reaching the best attainable positive aspects and returns for shareholders within the medium to long run.
Abdullah Belhoul, CEO of TECOM Group, stated: “As we transfer in direction of the implementation of the strategic acquisition and growth plan price 1.7 billion dirhams, TECOM Group has all of the elements and parts essential to make the most of the distinctive alternatives out there within the business actual property sector. market in Dubai. This plan doesn’t characterize “That is simply an growth of our asset portfolio, however slightly a strategic step to profit from present market dynamics and transfer ahead with our imaginative and prescient to maintain tempo of the wants of the longer term, alongside our need to proceed to play a number one function in selling the expansion of the information financial system in Dubai and the UAE, and to attain the absolute best returns for our shareholders and all stakeholders.
He added: “The strategic plan is absolutely in keeping with one of many basic pillars of our development technique, which is to discover new sources of development and increase our choices, along with enhancing the worth of our portfolio. ‘belongings. has all the time been a serious assist in accelerating our formidable development price and maintaining with market developments.
He continued: “Due to the smart monetary administration and the adoption of one of the best capital construction, along with the robust monetary efficiency of the group throughout 2023 and the primary quarter of 2024, the group has the mandatory monetary capacities to place implement these transactions, whereas sustaining a stable monetary place and adequate liquidity.
The strategic acquisitions and growth plan consists of the next belongings:
1- Buildings with premium workplace areas in Dubai Web Metropolis. TECOM Investments, a subsidiary of TECOM Group, will purchase two first-class workplace buildings in Dubai Web Metropolis from Dubai Holding Asset Administration (DHIM) with a complete worth of. 420 million dirhams.
2- A gaggle of commercial lands within the industrial metropolis of Dubai, the place “Dubai Industrial Metropolis”, a subsidiary of the TECOM group, will purchase a number of industrial lands with a complete space of 13.9 million sq. ft of land allotted to be used industrial with Dubai Holding “DHIM” asset administration for a complete worth of 410 million dirhams, with the purpose of enhancing the land inventory and responding to robust and sustainable demand for these belongings.
3- A primary-class workplace house growth undertaking in Dubai Design District, the place Dubai Design District, a subsidiary of TECOM Group, will purchase a complete space of 629,000 sq. ft from Dubai Holding Asset Administration (DHIM) for price 136 million dirhams throughout the mixed-use “Design Quarter” undertaking of the second part of the Dubai Design District. The group plans to spend 689 million dirhams on the development of six prime workplace buildings, with a complete rental space of 503,000 sq. ft.
It must be famous that the aforementioned acquisitions had been topic to considerate and exact procedures by which all market rules and governance controls had been taken under consideration, along with following the very best requirements when it comes to valuation, as a result of they had been carried out by an unbiased third social gathering. social gathering accredited by regulatory authorities.
The group has a stable monetary place and adequate liquidity to allow it to hold out deliberate acquisitions by counting on its current sources and with out the necessity for added exterior financing, due to its stable monetary efficiency, pushed by excessive ranges of comparatively low debt and considerable liquidity. The group can profit from as much as 3.2 billion dirhams from the out there credit score amenities it obtained following the refinancing settlement it concluded in 2023, which presents extra aggressive financing circumstances.
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