UAE’s Tabreed acquires 80% stake in Emaar’s district cooling business

UAE-based National Central Cooling Company (Tabreed) has acquired a 80 per cent stake in property developer Emaar’s Downtown Dubai district cooling business for Dhs2.48bn ($675m), it announced on April 6.

Emaar Properties will retain a 20 per cent stake.

Downtown Dubai, Emaar’s flagship development is home to the Burj Khalifa, The Dubai Mall, Dubai Fountain, Dubai Opera and other residential, commercial and hospitality developments.

The long-term concession will provide up to 235,000 RT (refrigeration ton) of cooling to these developments with the world’s largest integrated energy-efficient cooling scheme.

The district cooling scheme currently provides 150,000 RT of contracted capacity through a network that distributes chilled water produced in three interconnected district cooling plants. The fourth plant is under construction, a statement said.

Following the transaction, Tabreed’s presence in Dubai has increased to 278,801 RT while its total capacity has grown by 12.6 per cent to 1,338,602 RT from 83 plants.

“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,” said Khaled Abdulla Al Qubaisi, chairman of Tabreed.

“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.”

Chairman of Emaar Properties, Mohamed Alabbar added: “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.”

With this transaction, Tabreed’s portfolio of developments 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.