Tecom buys university campus in Dubai for $34m

• Campus in Academic City
• Acquisition costs AED125m
• Part of expansion strategy

Tecom Group, a developer and operator of business parks and free zones in Dubai, has acquired an integrated university campus in Dubai International Academic City amid growing global demand for premium educational assets.

The campus comprises multiple buildings and spans more than 300,000 square feet, the company said in a statement to the Dubai Financial Market on Thursday.

The AED125 million ($34 million) acquisition comes as top international universities vie for premium educational assets, driven by government strategies and initiatives such as the National Strategy for Higher Education 2030, the Dubai Economic Agenda (D33), and the Education 33 Strategy.

The campus supports Tecom’s education cluster, comprising of Dubai International Academic City and Dubai Knowledge Park, which is currently operating at 99 percent occupancy.

The acquisition raises the group’s total investments across its commercial and industrial portfolio to more than AED5.5 billion since listing in July 2022. It will upgrade the newly acquired campus buildings and facilities to meet the highest quality standards.

“The acquisition, part of our expansion strategy, enhances Dubai International Academic City’s ability to unite internationally renowned academic institutions,” said Abdulla Belhoul, CEO of Tecom Group.

He said the group’s education cluster is home to over 85 percent of students enrolled in private higher education institutions across the emirate.

“We will actively pursue such growth opportunities to enhance our portfolio of educational assets.”

The acquisition was funded through Tecom’s existing resources, the statement said.

In December the company launched the fourth phase of Innovation Hub in Dubai Internet City.

Tecom invested AED1.6 billion to acquire 138 land plots spanning 33 million square feet in Dubai Industrial City in August.

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Dubai Holding Asset Management, owned by the ruler of Dubai, holds 86.5 percent of Tecom, while the remaining 13.5 percent is listed on the DFM.

Tecom operates 10 business districts in the emirate, including Dubai Media City and Dubai Internet City.

Tecom Group listed on the Dubai Financial Market in 2022. Its share price of AED3.36 is up around 3 percent in the last year.