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Mon 6 Apr 2020 09:42 AM

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Emaar sells 80% stake in district cooling business for $675m

Tabreed takes majority share of Downtown Dubai district cooling business

Emaar sells 80% stake in district cooling business for $675m

Downtown Dubai is home to the iconic Burj Khalifa, Dubai Mall, the Dubai Fountain, Dubai Opera and a host of residential and commercial developments.

Emaar Properties has sold an 80 percent stake in its Downtown Dubai district cooling business to National Central Cooling Company (Tabreed) in a deal worth AED2.48 billion ($675 million).

The Dubai-based real estate giant will retain 20 percent of the company as part of the "long-term partnership with Tabreed".

Khaled Abdulla Al Qubaisi, chairman of Tabreed, said: “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.”

Downtown Dubai is home to the iconic Burj Khalifa, Dubai Mall, the Dubai Fountain, Dubai Opera and a host of residential and commercial developments.

The district cooling scheme currently provides 150,000 RT (tefrigeration tonnes) 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.

The deal increases Tabreed’s presence in Dubai to 278,801 RT and its total capacity has increased by 12.6 percent to 1,338,602 RT from its 83 plants.

Chairman of Emaar Properties, Mohamed Alabbar, added: “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.”

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