Mubadala Fund, Tabreed Buy Cooling Concession for $285 MillionStefania Bianchi
A group including Mubadala Infrastructure Partners and National Central Cooling Co. acquired a concession to provide cooling services to developments on Abu Dhabi’s Al Maryah Island for $285 million.
Mubadala Infrastructure Partners, an independent Mubadala-linked infrastructure fund with institutional investors from the Gulf region and Asia, and National Central Cooling, known as Tabreed, will take over the existing district cooling provider as part of the 30-year deal, according to an e-mailed statement today from Tabreed.
The transaction will be funded through a combination of equity and a 20-year non-recourse senior loan provided by First Gulf Bank PJSC, it said.
Consolidation in the cooling industry is quickening as demand increases because of a construction boom in the United Arab Emirates. Dubai district cooling firm Empower, majority owned by Dubai Electricity & Water Authority, bought Dubai World unit Palm District Cooling for $500 million in January.
Taking over the concession will give the group access to as much as 80,000 refrigerated tons of supply for Abu Dhabi’s new Central Business District on Al Maryah Island, Tabreed said. The development will also include shops and hotels
Tabreed said in April that first-quarter profit rose 22 percent to 58.2 million dirhams ($15.9 million). The shares rose 8.5 percent to 1.79 dirhams as of 1:46 p.m. in Abu Dhabi and have dropped 25 percent this year.