Tabreed acquires 80% of Emaar's Downtown Dubai district cooling
The $675m (AED2.48bn) deal will see Tabreed’s Dubai presence grow to 278,801 RT with a 12.6% total increase to 1,338,602 RT
Dubai Financial Market-listed district cooling developer National Central Cooling Company (Tabreed) has acquired an 80% stake in the real estate giant Emaar Properties’ Downtown Dubai district cooling business at a cost of $675.16m (AED2.48bn).
The UAE’s leading property developer Emaar will retain a 20% stake as part of the long-term partnership with Tabreed.
Downtown Dubai is Emaar’s flagship mega-development in the heart of the emirate. The destination is home to the Burj Khalifa – the world’s tallest building; The Dubai Mall – the most visited mall in the world; The Dubai Fountain; the Dubai Opera; as well as other residential, commercial, and hospitality developments.
The long-term concession will exclusively provide up to 235,000 RT of cooling to Dubai’s most prestigious developments with the largest integrated energy efficient cooling scheme in the world.
The district cooling scheme currently provides 150,000 RT of contracted capacity through a network that distributes chilled water produced in three built, interconnected district cooling plants, which will shortly be supported by a fourth plant that is currently under construction.
Following the completion of the transaction, Tabreed’s presence in Dubai will increase to 278,801 RT and its total capacity will increase by 12.6% to 1,338,602 RT from 83 plants.
Commenting on the deal, the chairman of Tabreed, Khaled Abdulla Al Qubaisi, 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.
Al Qubaisi added: “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 proud to be a partner of choice for Emaar and to serve their iconic developments in Downtown Dubai.
Sharing his thoughts on the acquisition, the chairman of Emaar Properties, Mohamed Alabbar, said: “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.”
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, The Sheikh Zayed Grand Mosque, and the Jabal Omar Project in Makkah, among others.