Tabreed and Emaar Properties officials sign the agreement.
Tabreed buys stake in Emaar cooling unit
01 May 2020
UAE-based National Central Cooling Company (Tabreed) said it has reached an agreement with leading Dubai developer Emaar Properties for the acquisition of a 80 per cent stake in its Downtown Dubai district cooling business for Dh2.48 billion ($675 million).
Downtown Dubai is Emaar’s flagship mega-development at the heart of the city. The destination is home to the iconic Burj Khalifa, the world’s tallest building, The Dubai Mall, The Dubai Fountain, Dubai Opera and other landmark residential, commercial and hospitality developments.
The long-term concession will exclusively provide up to 235,000 tonnes of refrigeration (RT) of cooling to Dubai’s most prestigious developments with the largest integrated energy-efficient cooling scheme in the world.
As per the deal, Emaar will retain a 20 per cent stake as part of the long-term partnership with Tabreed.
The district cooling scheme currently provides 150,000 RT of contracted capacity through a network that distributes chilled water produced in three already built interconnected district cooling plants. A fourth state-of-the-art plant is currently under construction.
Following the completion of the transaction, Tabreed’s presence in Dubai has increased to 278,801 RT and its total capacity has increased by 12.6 per cent to 1,338,602 RT from 83 plants.
On the strategic move, Chairman Khaled Abdulla Al Qubaisi said: “This is a historic achievement for Tabreed and a truly transformational transaction for the company, accelerating our growth trajectory and consolidating our position in Dubai. Tabreed is an international powerhouse in district cooling, with over 22 years of experience, operational excellence across 83 plants and investments in six countries. This acquisition, in the world’s largest district cooling market, is a further testament to our financial strength and leading market position.”
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