Emirates Central Cooling Systems Corporation (Empower) said it has signed an agreement with Dubai developer Nakheel for acquisition of 19 of its district cooling plants for AED860 million ($234 million). 

 

As per the deal, Empower will acquire all the assets of the Nakheel’s district cooling systems that serves more than 18,000 customers in 17 major urban projects across Dubai. These plants have a total cooling capacity of 110,000 refrigeration tonnes (RT).

 

Empower said it will also manage and operate them and carry out all the activities, functions, operations and obligations. 

 

The financing of the deal will be through a mix of company’s funds and finance from local and international banks with which Empower is having close strategic relations, it added.

 

The agreement was signed by Empower CEO Ahmad bin Shafar and Nakheel CEO Naaman Atallah in the presence of Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of the Dubai Supreme Council of Energy, Mohammed Ibrahim Al Shaibani, the CEO of the Investment Corporation of Dubai and Chairman of Nakheel and Saeed Mohammed Al Tayer, Dewa Managing Director and CEO and Chairman of Empower.

 

Sheikh Ahmed said Empower's acquisition of the entire cooling systems of Nakheel reflects the booming business environment in Dubai and the growth in number and type of the acquisition deals. 

 

Al Shaibani pointed out that the sale was a strategic move that let Nakheel focus on its core business and enhance the services provided to investors, residents, business partners and customers at some of the biggest, most established communities and retail destinations in Dubai.  

 

Al Tayer said the positive implications of such partnerships far exceed their investment dimensions. 

 

"We are keen that the deal would give thrust to improving the efficiency of the energy sector, achieving a qualitative breakthrough in the standards of meeting the growing demand for district cooling services, and nourishing the momentum of establishing environmentally sustainable communities across the emirate," he added.

 

Bin Shafar said Empower had always focussed on investing in advanced district cooling infrastructure in line with requirements, and to provide seamless services to its customers and this strategy has helped it in achieving the leadership position in the industry. 

 

It has been consistently growing its portfolio of projects and addition of the Nakheel projects will further diversity Empower’s portfolio which will include, The Gardens, Nakheel Mall, Dragon Mart, Jumeirah Islands, Souk Al Marfa -Deira Islands, The Circle Mall and Al Khail Avenue Mall, he added.-TradeArabia News Service