UAE – Mubasher: Aldar Properties has entered into an agreement to sell its two district cooling assets on Abu Dhabi’s Saadiyat Island to National Central Cooling Company (Tabreed) in exchange for AED 963 million.
Aldar will witness an internal rate of return of more than 40% on its original equity investment from the transaction, expected to be completed in the first quarter (Q1) of 2021, according to a press release on Wednesday.
The ADX-listed company will benefit from the proceeds to finance further growth in its portfolio of high-quality income-generating property.
In 2018, Aldar purchased a 100% stake in Saadiyat District Cooling (SDCL) and an 85% stake in Saadiyat Cooling (SCL) as part of a wider acquisition of assets from Tourism Development and Investment Company (TDIC).
Commenting on the transaction, the CEO of Aldar, Talal Al Dhiyebi, said: "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."
Meanwhile, Tabreed’s CEO, Bader Saeed Al Lamki, 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."
It is noteworthy to mention that in October, Aldar signed a memorandum of understanding (MoU) with Abu Dhabi's state holding company ADQ to take over the development and management of government capital projects worth about AED 30 billion.
