Manazel partners with German energy services firm
Techem to lease sub-metering equipment; major cost savings predicted
Abu Dhabi real estate firm Manazel has signed a framework deal with Germany’s Techem that will allow the latter to provide sub-metering for chilled water in the former’s Al Reef Downtown development and its 9712 Building Material City project.
The European energy services provider will lease equipment to Manazel for a ten-year period, after which the contract can be renewed. Techem says the deal breaks new ground in the UAE, since the leasing of equipment of this type is unknown in this region, despite being commonplace elsewhere.
“There is no other company operational in the Middle East that offers metering and billing services similar to Techem’s,” said Hans Altmann, Techem’s regional manager for the Middle East & North Africa.
“Manazel has recognised the financial benefits to developers of leasing sub-metering devices and the signing of this frame agreement signals the beginning of our successful partnership,” Altmann added.
The German firm specialises in precise billing of cooling energy, which can reduce consumption by around 20% in sub-metered buildings, thus drastically reducing developers’ costs.
“The advantages of lease agreements for developers are numerous. Firstly, the provider takes responsibility for maintaining the equipment, replacing devices where necessary at no extra cost," said Mohammed Mehanna Al Qubaisi, chairman of Manazel.
"Most significantly though, the developer is not obliged to tie up much-needed cash at the time of construction, which is especially important in the current financial climate. By signing the agreement with Techem, we will therefore save on costs as well as benefit from a future-oriented service,” Al Qubaisi added.