Developer has received several offers to buy its entire stake in district cooling provider
Union Properties, a UAE-based real estate developer, has announced that it is in the final stages of selling its entire stake in Emirates District Cooling (Emicool), a major district cooling service provider in the region.
In a statement, the developer said that it had received several offers to buy its entire stake from various UAE-based companies. It added that it was finalising the necessary legal formalities and that a buyer would be announced shortly.
“The sale of Union Properties’ stake in Emicool is another important milestone for us, and will contribute to our new strategy to enhance our investments, diversify our revenue streams, expand our business, and venture into new markets. At a time when Union Properties is undergoing a new phase of growth, this move further strengthens our focus on core operations, and tapping into new sectors,” Ahmed Yousef Khouri, group CEO of Union Properties.
“Over the past few years, Emicool has become a well-established name in the UAE’s and the region’s district cooling services sector, and has contributed significantly to the growth and development of Union Properties,” he continued. “Union Properties will be focusing on developing its business further in other key sectors, and we are confident Emicool will continue its successful journey in the future.”
Emicool was established in 2003 as a limited liability company that is jointly owned by Union Properties and Dubai Investments. The service provider’s core operations revolve around providing district cooling services for residential, commercial and industrial areas, along with the distribution, transportation and selling of cold water used in cooling equipment for individual and corporate clients.
The company services a number of areas in Dubai, including Motor City, Dubai Investments Park, Dubai Sports City, Uptown Mirdiff, Mirdiff Hills and Hotel Palazzo Versace, amongst many others. It has also signed contracts to build and operate cooling facilities on Palm Deira.
Demand for district cooling services has continued to grow throughout the UAE and the region. As a result, Emicool has been steadily increasing its overall productivity – by 13% in 2016 and by 18% in 2017. It is looking to expand its operational capacity to more than 500,000 tons by 2020.