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 most visited mall in the world, 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; shortly followed by a fourth state-of-the-art plant that 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.
The transaction represents a major milestone in Tabreed’s history, demonstrating the company’s ability to deliver on its growth potential and reinforcing its position as the global district cooling industry leader and the cooling provider of choice for landmark developments in the region and beyond.
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," he noted.
"We are well placed to take advantage of growth opportunities and expect our enhanced presence within the Dubai market to further enable us to reach our long-term objectives," he added
Emaar Properties Chairman Mohamed Alabbar said: "This is a key transaction for both Emaar and Tabreed. Emaar values the strategic partnerships we establish, making a concerted effort to nurture and deepen these alliances."
"Tabreed is one such example where we can identify with many synergies between the companies, and we’re pleased to see our prosperous journey reach new heights. Downtown Dubai is a hallmark of pride for Emaar and we trust Tabreed feels the same way, serving and treating its constituents as their own," he added.