2024-05-16 00:05:00
The TECOM group introduced the approval by the board of administrators of a strategic acquisition and growth plan, in the course of 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 gaggle of economic and industrial belongings from Dubai Holding Asset Administration (DHIM), along with allocating 689 million dirhams to develop new retail areas. premier places of work in Dubai space. Design.
These strategic acquisitions are a part of the group’s clear and particular enlargement plan to realize sustainable development and keep sturdy efficiency, by strengthening its portfolio of versatile and high-quality industrial and industrial belongings, and including new sustainable income streams, to assist its continued development, thereby consolidating the group’s main place in growing built-in enterprise environments and strategic sectors in Dubai, in addition to reaching the best attainable positive aspects and returns for shareholders within the medium and long run.
TECOM Group CEO Abdullah Belhoul mentioned: “As we transfer in direction of the implementation of the strategic acquisitions and growth plan price 1.7 billion dirhams, (Tecom Group) owns all the required elements and components to reap the benefits of the distinctive alternatives out there within the industrial actual property market in Dubai, and this plan not solely represents an enlargement of our asset portfolio, however it’s a strategic step to reap the benefits of the present market dynamics and advance our imaginative and prescient to maintain tempo with the wants of the long run, alongside our want to proceed to play a number one position in selling the expansion of the data economic system in Dubai and the United Arab Emirates, and to realize the absolute best returns for our shareholders and all stakeholders.
He added: “The strategic plan is totally in line with one of many basic pillars of our development technique, which is to discover new sources of development, increase our choices and enhance the worth of our portfolio of belongings. The enlargement stage by means of acquisition transactions has all the time been a serious assist to speed up our bold development tempo and hold tempo with market developments.
He continued: “Because of the smart monetary administration and the adoption of one of the best capital construction, along with the sturdy monetary efficiency of the group throughout 2023 and the primary quarter of 2024, the group has the required monetary capacities to place implement these transactions, whereas sustaining a strong monetary place and enough liquidity.
The strategic acquisitions and growth plan contains the next belongings:
1- Buildings with premium workplace areas in Dubai Web Metropolis, the place TECOM Investments, a subsidiary of TECOM Group, will purchase two premium workplace buildings in Dubai Web Metropolis from Dubai Holding Asset Administration “D HIM” d a complete worth of 420 million dirhams.
2- A gaggle of business lands in Dubai Industrial Metropolis, the place Dubai Industrial Metropolis, a subsidiary of TECOM Group, will purchase a number of industrial lands with a complete space of 13.9 million sq. ft allotted for industrial use from Dubai Holding Asset Administration. “DH” EM” with a complete worth of 410 million dirhams, with the purpose of enhancing the land inventory and assembly the sturdy and sustainable demand for these belongings.
3- A venture to develop first-class workplace house 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 (DHA). price 136 million dirhams throughout the mixed-use “Design Quarter” venture of the second section 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 have been topic to considerate and exact procedures during which all market rules and governance controls have been taken under consideration, along with following the very best requirements when it comes to valuation, as a result of they have been carried out by an impartial third occasion. occasion permitted by regulatory authorities.
The group has a strong monetary place and enough liquidity to allow it to hold out deliberate acquisitions, counting on its present sources, and with out the necessity for added exterior financing, because of its strong monetary efficiency, pushed by excessive ranges comparatively low debt and considerable liquidity. . The group can profit from as much as 3.2 billion dirhams from the out there credit score services it obtained following the refinancing settlement it concluded in 2023, which presents extra aggressive financing circumstances.
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