The Emirates Central Cooling Systems Corporation, also known as Empower, has bought 19 cooling plants for AED860 million ($234 million), said local reports on Monday, August 23.
Headquartered in Dubai, Empower said it had signed an agreement with the emirate-based developer Nakheel to acquire these district cooling plants.
As per the terms of the deal, Empower will acquire all the assets of Nakheel’s district cooling systems that serve more than 18,000 customers in 17 major urban projects across Dubai.
These plants have a total cooling capacity of 110,000 refrigeration tons, said the local reports.
Empower is also expected to manage and operate the plants, carrying out all of their activities, functions, operations, and obligations.
The financing of the deal will reportedly be through a mix of Empower’s funds and finance from local and international banks.
The agreement was signed by Empower CEO Ahmad bin Shafar and Nakheel CEO Naaman Atallah in the presence of Dubai Civil Aviation Authority President Sheikh Ahmed bin Saeed Al Maktoum and Dubai Supreme Council of Energy Chairman Mohammed Ibrahim Al Shaibani, who is also the chairman of Nakheel.
Empower Chairman Saeed Mohammed Al Tayer was also present at the signing of the deal.
Al Shaibani was quoted by the reports as saying 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.