Emirates Central Cooling Systems Corporation, better known as Empower, has signed an agreement to acquire Nakheel’s district cooling unit, with a total cooling capacity of 110,000 refrigeration tons (RT) and a total value of AED860 million ($234 million).
The world’s largest district cooling services provider said the deal stipulates that 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 through 19 plants across Dubai.
Empower will also manage and operate them and carry out all the activities, functions, operations and obligations, a statement said.
Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy, said that 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.
Mohammed Ibrahim Al Shaibani, chairman of Nakheel, said the sale is a strategic move that allows Nakheel to focus on its core business.
Saeed Al Tayer, chairman of Empower, hailed the deal as a “new bright milestone” for the company.
“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.
Ahmad bin Shafar (pictured above), CEO of Empower, said the company has been consistently growing its portfolio of projects and the 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, Al Khail Avenue Mall.
He added that the financing of the deal will be through a mix of company’s funds and finance from local and international banks.
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