Abu Dhabi’s Aldar to sell two district cooling assets for Dhs963m

Abu Dhabi’s Aldar Properties has signed an agreement to divest two of its district cooling assets on the capital’s Saadiyat Island to National Central Cooling Company (Tabreed).

The sale will be worth Dhs963m, while the transaction is expected to be completed in Q1 2021, generating an internal rate of return of more than 40 per cent. Proceeds will be used to finance further growth of Aldar’s portfolio.

Aldar had purchased a 100 per cent stake in Saadiyat District Cooling (SDCL) and an 85 per cent stake in Saadiyat Cooling (SCL) from Tourism Development and Investment Company (TDIC) in 2018. SDCL and SCL provide district cooling to Saadiyat Island in Abu Dhabi.

“This divestment crystalises significant value for Aldar shareholders and is a clear example of our strategy for value creation in action,” said Talal Al Dhiyebi, chief executive officer of Aldar Properties.

“Aldar is pursuing attractive acquisitions, implementing an active approach to asset management and continuously recycling capital to invest in future growth. In line with this strategy, Aldar will build on its strong financial and operating performance in 2020 by further deploying capital in the long-term growth of our two core real estate businesses – Asset Management and Development Management.”

Bader Saeed Al Lamki, Tabreed’s chief executive officer, said: “As an industry leader, our strategic partnerships have allowed Tabreed to grow into an international powerhouse in district cooling, with over 22 years of experience and investments across six countries. Our partnership with Aldar is one such example, and this transaction is testament to the strong relationship we enjoy with them.”

In 2019, the Abu Dhabi Department of Energy (DoE) issued the District Cooling Regulations and the District Cooling Applicability Regulations, becoming the first regulatory authority in the MENA region to set up an integrated system for district cooling. Both SCL and SDCL will be the first district cooling schemes to receive the new licence in Abu Dhabi.

In related company news, Aldar inked an agreement with ADQ earlier this year to manage over Dhs30bn of capital projects.

Read: Aldar, ADQ sign agreement on Dhs30bn of Abu Dhabi projects

Following the deal, it became the biggest listed developer in the UAE after its shares rose the most in six years.

Read more: Aldar eclipses Emaar as top UAE developer on $8bn deal