KHALEEJ TIMES, Tuesday, Mar 16, 2021 | Shaaban 2, 1442
Nakheel eyes district cooling assets sale
Emirates:
Nakheel is considering the sale of its district cooling assets, three
sources familiar with the matter told Reuters, as real estate companies in
the UAE sell assets amid the coronavirus downturn.
Nakheel, the developer of the emirate’s palm-shaped islands, has hired financial
advisory Synergy Consulting to manage the process, said two of the sources who
declined to be named as the matter was not public.
Nakheel declined to comment and Synergy did not respond to a request for
comment.
Dubai-listed National Central Cooling Co (Tabreed) and Emirates Central Cooling
Systems Corp (Empower) have expressed interest in Nakheel’s deal, the sources
said.
Tabreed said in a statement, that as a listed company it cannot comment on
market rumours or speculation. Empower did not immediately respond to requests
for comment.
One of the sources said the deal, which could be valued at around Dh1 billion
($272 million), is structured as a 30-year concession agreement.
District cooling firms deliver chilled water through insulated pipes to offices,
as well as to industrial and residential buildings.
Nakheel’s district cooling assets include 20 units around Dubai with a total
capacity of 100,000 to 120,000 tonnes of refrigeration.
Separately, Dubai is considering selling a stake in the cooling system
operations at Dubai International Airport and has hired Standard Chartered to
arrange the process, sources familiar with the matter told Reuters in November.
Nakheel, which was forced into a massive debt restructuring following Dubai’s
2009-2010 real estate crash, last year slashed salaries by as much as 50 per
cent.
Dubai’s real estate sector, sluggish for most of the past decade, has suffered
during the pandemic, which led many foreign workers to leave and worsened
oversupply.
Emaar Properties, Dubai’s largest developer, sold a stake in its downtown
cooling business last year for $675 million, while Abu Dhabi’s Aldar Properties
agreed to sell two district cooling assets in December.
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