DUBAI, UAE, 6 April 2020: National Central Cooling Company (Tabreed) has acquired 80% stake in Emaar Properties’ Downtown Dubai district cooling business at a cost of AED 2.48 billion (USD 675 million). Tabreed made the announcement through a Press release. Emaar, one of the world’s largest real estate companies and a global property developer, will retain a 20% stake as part of the long-term partnership with Tabreed, the release said.
According to the release, Downtown Dubai is Emaar’s flagship mega-development at the heart of the city. The destination is home to the Burj Khalifa, the world’s tallest building; The Dubai Mall; The Dubai Fountain; Dubai Opera and other residential, commercial and hospitality developments. The long-term concession will exclusively provide up to 235,000 refrigerated tonnes (RT) of cooling to Dubai’s most prestigious developments, with the largest integrated energy-efficient cooling scheme in the world, Tabreed said.
The district cooling scheme, Tabreed said, 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. Tabreed said that following the completion of the transaction, its 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, Tabreed said, represents a major milestone in its 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, 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.”
Commenting on the acquisition, Mohamed Alabbar, Chairman, Emaar Properties, added: “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.”