Tabreed acquires district cooling plant in the UAE
With this acquisition, Tabreed’s portfolio has risen to 71 district cooling plants throughout the GCC
UAE-based National Central Cooling Company (Tabreed) has acquired a district cooling plant from International Capital Trading (ICT), adding more than 11,500 refrigeration tonnes (RT) of cooling to its existing connected capacity.
With this acquisition, Tabreed’s portfolio has risen to 71 district cooling plants throughout the GCC, said the company in a statement.
The new plant will be owned by Prime District Cooling, a special purpose vehicle set up by Tabreed and ICT as joint venture (JV) partners to acquire the plant.
Under the new arrangement, Tabreed will own a 75% share in Prime while ICT will hold the remaining 25% share of the JV.
The district cooling plant provides cooling to ICT’s Nation Towers development, located on the Abu Dhabi Corniche. The development includes Nation Galleria Mall, Nation Towers Offices, Nation Towers Residences, Nation Riviera Beach Club and the St. Regis Abu Dhabi Hotel.
Tabreed’s CEO, Jasim Husain Thabet, said: "This acquisition expands our presence in Abu Dhabi by supplying cooling to one of the most exciting retail properties on the Abu Dhabi Corniche, increasing our current number of plants across the GCC to 71 plants.
"It underscores our commitment to support and fulfill current and future infrastructure needs of large scale developments. Our partnership with ICT, a leader in Abu Dhabi’s business environment, enables the landmark development to benefit from Tabreed’s 18 years of experience in operating and maintaining district cooling plants, which in turn, contributes to the sustainable and economic development of the UAE. We look forward to working with ICT on this venture and growing our portfolio of customers that we support across the region."
The acquisition has been mainly funded by an $21.7m (AED80m), 15 year non-recourse project finance loan from First Gulf Bank, Abu Dhabi.
Hamad Abdullah Al Shamsi, the ICT’s chief executive, said: "Tabreed has a longstanding track record of providing quality services to its clients and partners in the UAE and across the GCC. Our partnership enhances our ability to provide Tabreed’s high quality and efficient district cooling services to the guests, residents and businesses of Nation Towers."