Abu Dhabi-based developer Manazel and leading German energy services firm Techem have signed first-of-a-kind framework agreement on metering equipment and billing services.

Under the agreement, Techem will provide sub-metering for chilled water in two of the developer’s landmark projects.

The agreement breaks new ground in the UAE as well as across the Middle East, since the leasing of equipment is a common practice in many parts of the world but so far unknown in this region.

Manazel’s Al Reef Downtown development and Phase 2 of the 230,000 sq mt Building Material City (BMC) project will both benefit from the installation of Techem’s metering devices upon completion next year.

The equipment will be leased to Manazel for a period of ten years, after which the developer can choose to renew the contract.

Techem is the market leader in Europe and in many other countries internationally for the consumption-based billing and metering of energy. The company, which both sells and leases its metering devices, has become a prime mover in the local real estate market.

“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.”

In the UAE, Techem specialises in the precise consumption-based billing of cooling energy, which is used for air conditioning. The latter constitutes one of the major sources of energy usage in this region, so demand is high among developers for ways to reduce consumption and hence cut costs.

According to Altmann, studies have shown that consumption is around 20 per cent lower in sub-metered buildings. The installation of metering devices at the beginning of construction can therefore drastically reduce developers’ operational costs, enabling them to offer lower service charges to tenants.

“The advantages of lease agreements for developers are numerous,” said Mohammad Mehanna Al Qubaisi, chairman of Manazel.

“Firstly, the provider takes responsibility for maintaining the equipment, replacing devices where necessary at no extra cost,” he added.

“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.”

Manazel, one of the UAE’s leading real estate providers, is currently building several large-scale, mixed-use developments aimed at addressing the country’s need for premium quality yet affordable properties.

Al Reef Downtown will provide the core of Manazel’s prestigious Al Reef Community, while BMC Phase 2 will comprise a wide range of commercial establishments, residential units, office towers, and a hotel.

The incorporation of Techem’s sub-metering devices into these two key projects is in line with Manazel’s mission of supporting its innovative and sustainable developments through the use of modern technology.

Techem has been active in the global energy services market for the past 55 years and opened a Dubai subsidiary in 2007, its first in the Middle East. In establishing a partnership through the frame agreement, Manazel will thus capitalise on the German firm’s vast international experience and strong reputation abroad. – TradeArabia News Service