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Empower acquires Nakheel’s district cooling assets

Agreement between the two entities will see Empower take over 19 district cooling plants, valued at AED 860 million

| | Aug 23, 2021 | 9:29 pm
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DUBAI, UAE, 23 August 2021: In the presence of H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive Officer of Emirates Airlines and Group, and Chairman of the Dubai Supreme Council of Energy, Emirates Central Cooling Systems Corporation (Empower) signed an acquisition agreement of Nakheel’s district cooling unit, with a total cooling capacity of 110,000 refrigeration tons (RT) and a total value of AED 860 million.

Making the announcement through a Press release, Empower said the acquisition agreement stipulates that it will acquire all the assets of Nakheel’s district cooling systems that serve more than 18,000 customers in 17 major urban projects through 19 plants across Dubai. Empower added that it will also manage and operate them and carry out all the activities, functions, operations and obligations.

H.E. Mohammed Ibrahim Al Shaibani, Director General of the Dubai Ruler’s Court, CEO and Board Member of the Investment Corporation of Dubai and Chairman of the Board of Directors of Nakheel, and H.E. Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority and Chairman of the Board of Directors of Empower, were also present at the signing of the agreement, Empower said.

Ahmad bin Shafar, CEO, Empower, and Naaman Atallah, CEO, Nakheel, signed the acquisition agreement.

Standing (L-R): H.E. Mohammed Ibrahim Al Shaibani, H.H. Sheikh Ahmed bin Saeed Al Maktoum and H.E. Saeed Mohammed Al Tayer. Sitting (L-R): Naaman Atallah and Ahmad bin Shafar

Standing (L-R): H.E. Mohammed Ibrahim Al Shaibani, H.H. Sheikh Ahmed bin Saeed Al Maktoum and H.E. Saeed Mohammed Al Tayer. Sitting (L-R): Naaman Atallah and Ahmad bin Shafar

H.H. Sheikh Ahmed bin Saeed Al Maktoum highlighted that Empower’s acquisition of the entire cooling systems of Nakheel reflects the booming business environment in Dubai and the growth in the number and type of the acquisition deals. This, indeed, embodies the vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, he said. This vision, he said, was further demonstrated by His Highness’ words a few days ago: “Everyone succeeds and wins in Dubai, and the next is always more beautiful and greater.”
The deal also accentuates and adds to the position that Dubai occupies on the global sustainable development map.

H.E. Al Shaibani said the sale is a strategic move that allows Nakheel to focus on its core business and enhance the services provided to investors, residents, business partners and customers at some of the biggest, most established communities and retail destinations in Dubai.

H.E. Al Tayer said that the acquisition agreement is in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to promote sustainable development, and with the Dubai Demand Side Management Strategy 2030, of which district cooling is one of the foundations. District cooling contributes to enhancing energy efficiency in Dubai. The agreement is a new bright milestone for Empower’s success and a consolidation of its local, regional and global leadership as a model of growth and prosperity of all industrial sectors in Dubai, H.E. Al Tayer said. These sectors are quite rich with investment opportunities and are definitely able to permanently develop and expand the scope of investment activities that relate to the present and future of the vital district cooling sector, he said.

H.E. Al Tayer said: “The positive implications of such partnerships far exceed their investment dimensions. We are keen that the deal would give thrust to improving the efficiency of the energy sector, achieving a qualitative breakthrough in the standards of meeting the growing demand for district cooling services, and nourishing the momentum of establishing environmentally sustainable communities across the Emirate. This, indeed, goes in line with Dubai’s vision to be one of the most sustainable cities in the world and to lead by example in energy efficiency.”

Bin Shafar said that Empower’s acquisition of Nakheel’s entire district cooling activities constitutes an important achievement for the company, which will serve some of the prestigious developments in Dubai. Empower has been consistently growing its portfolio of projects, and the addition of the Nakheel projects will further diversify Empower’s portfolio, which will include The Gardens, Nakheel Mall, Dragon Mart, Souk Al Marfa, Jumeirah Islands, Circle Mall and Al Khail Avenue.

He explained that Empower has always focused on investing in advanced district cooling infrastructure, in line with requirements, and to provide seamless services to its customers. This strategy, he said, has helped Empower in achieving the leadership position in the industry. Empower, he said, will continue providing its world-class district cooling services to the new customers of Nakheel’s projects. Bin Shafar added that besides the newly struck deal, Empower is exploring various other opportunities to acquire more district cooling assets.

Bin Shafar confirmed that the financing of the deal will be through a mix of company’s funds and finance from local and international banks, with which Empower enjoys close strategic relations.

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