Tabreed acquires 80% stake in Emaar’s Downtown Dubai district cooling business for $675mn
Transaction increases Tabreed’s presence in Dubai to 278801RT, with total capacity increased to 12.6%
The UAE-based National Central Cooling Company (Tabreed) has said that it has reached an agreement with Emaar Properties, the Duba-based developer, for the acquisition of an 80% stake in its Downtown Dubai district cooling business, for $675 million.
Downtown Dubai is Emaar’s flagship mega-development at the heart of the city of Dubai. The area is home to the Burj Khalifa, the world’s tallest building, the Dubai Mall, the Dubai Fountain and Dubai Opera, along with other landmark residential, commercial and hospitality developments.
The long-term concession will exclusively provide up 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% stake as part of the long-term partnership with Tabreed, a statement from Tabreed added.
The district cooling scheme currently provides 150,000RT of contracted capacity through a network that distributes chilled water produced in three already built interconnected district cooling plants. These will be followed by a fourth state-of-the-art plant which 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% 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.
Khaled Abdulla Al Qubaisi, Chairman of Tabreed, 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. 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.
“We are proud to be a partner of choice for Emaar and to serve their iconic developments in Downtown Dubai. We are delighted with the agreement which paves the way for a long-term relationship with one of the world’s largest and most reputed real estate developers.” Al Qubaisi added.
With this transaction, Tabreed’s portfolio now includes the Burj Khalifa, Dubai Mall, Dubai Opera, the RTA’s Dubai Metro, Abu Dhabi Global Market, Etihad Towers, Yas Island, Aldar HQ, World Trade Centre Abu Dhabi, Cleveland Clinic Abu Dhabi, The Sheikh Zayed Grand Mosque, Bahrain Financial Harbour, Knowledge Oasis Muscat and the Jabal Omar Project in the holy city of Mecca.
Commenting on the acquisition, Chairman of Emaar Properties 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.”
