Empower acquires all of Nakheel's district cooling plants for Dh860 million

Supplied photo
Supplied photo

Dubai - The portfolio includes The Gardens, Nakheel Mall, Dragon Mart and Jumeirah Islands.


Waheed Abbas

Published: Mon 23 Aug 2021, 1:49 PM

District cooling firm Empower has acquired all of property developer Nakheel's 19 district cooling units in 17 major urban projects with a total cooling capacity of 110,000 refrigeration tons for Dh860 million.

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

The agreement was signed in the presence of Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and CEO of Emirates Airlines and Group, and chairman of the Dubai Supreme Council of Energy.

Mohammed Ibrahim Al Shaibani, the director-general of the Dubai Ruler's Court; CEO and board member of the Investment Corporation of Dubai, chairman of Nakheel, and Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority and Chairman of Empower were also present at the signing of the agreement.

The acquisition agreement was signed by Ahmad bin Shafar, CEO of Empower, and Naaman Atallah, CEO of Nakheel.

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

Mohammed Al Shaibani said the sale is a strategic move that allows Nakheel to 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.

"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 said.

"This indeed goes in line with Dubai's vision to be one of the most sustainable cities in the world and to lead by example in energy efficiency," Al Tayer added.

Ahmad bin Shafar stated that Empower has been consistently growing its portfolio of projects, and the addition of the Nakheel projects will further diversity Empower's portfolio. The portfolio includes, The Gardens, Nakheel Mall, Dragon Mart, Jumeirah Islands, Souk Al Marfa -Deira Islands, The Circle Mall, Al Khail Avenue Mall and others.

Bin Shafar also confirmed that the financing of this acquisition deal would be through a mix of the company's funds and finance from local and international banks with which Empower has close strategic relations.


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