Majid Al Futtaim 'eyeing sale of district cooling unit'
DUBAI, October 14, 2020
Majid Al Futtaim, a leading mall developer and retail and leisure pioneer in the Middle East and Africa, is putting its district cooling unit up for sale, reported Reuters, citing sources with knowledge of the matter.
District cooling firms deliver chilled water via insulated pipes to cool offices, industrial and residential buildings.
The Dubai-based retail pioneer, which also operates the Middle East franchise of French retailer Carrefour, has hired HSBC to tender the deal, said the sources, declining to be named as the matter is not public.
Majid Al Futtaim had sounded out potential investors over the summer, said the sources adding that it had yet to finalise exactly which assets would be included. The deal was likely to be worth around AED1 billion ($272 million), the sources added.
The sale is expected to attract the attention of UAE district cooling firm Tabreed, which bought an 80% stake in Emaar Properties' Downtown Dubai district cooling business earlier this year for AED2.48 billion, stated the Reuters report.
HSBC had led syndication of a $692 million term-loan facility used to acquire the business, it added.
