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Abu Dhabi, UAEWednesday 12 December 2018

Tabreed buys Aldar Properties' 50% stake in district cooling firm 

The transaction values S&T Cool District Cooling Company at Dh348m

Tabreed is seeking shareholders approval to issue $1bn in bonds or sukuk. Jumana El Heloueh / Reuters
Tabreed is seeking shareholders approval to issue $1bn in bonds or sukuk. Jumana El Heloueh / Reuters

National Central Cooling Company (Tabreed), which counts Mubadala Investment Company among its shareholders, acquired Aldar Properties’ 50 per cent stake in a district cooling operator serving Abu Dhabi’s Reem Island.

Tabreed will own 100 per cent of S&T Cool District Cooling Company following completion of the transaction, which values the firm at Dh348 million, the company said in a statement to the Dubai Financial Market, where its shares are traded. The deal is subject to regulatory approvals, it said.

“The acquisition underscores our commitment to support and fulfill current and future infrastructure needs of large scale developments,” said Jasim Thabet, the chief executive of Tabreed. “This is also another milestone in our district cooling relationship with Aldar.”

S&T’s district cooling plant on Reem Island has a connected capacity of over 31,500 refrigeration tonnes and provides cooling developments such as Sun & Sky Towers, Gate Towers, The Arc and Shams Boutik mall. Tabreed expects the plant’s capacity to increase with further developments in the area.

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Read more:

Tabreed explores growth opportunities in markets beyond GCC

Mubadala sells 40 per cent stake in Tabreed

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This acquisition is consistent with Tabreed’s strategy of acquiring additional district cooling assets to add to its existing portfolio in the region. The Reem Island plant is the sixth plant in Tabreed’s portfolio providing district cooling to Aldar developments.

Tabreed’s key UAE cooling projects include the Sheikh Zayed Grand Mosque and Yas Island in Abu Dhabi, alongside the Dubai Metro and Dubai Parks and Resorts. Its international footprints include the Jabal Omar development in Makkah.

The company has more than Dh1 billion in cash and committed bank financing and plans to fund its growth ambitions through a combination on equity and bank lending, its chief financial officer Stephen Ridlington told The National in January.