National Central Cooling Company PJSC entered into an agreement to acquire 80% stake in Downtown Dubai district cooling assets and concession from Emaar District Cooling for AED 2.5 billion.
April 04, 2020
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National Central Cooling Company PJSC (DFM:TABREED) entered into an agreement to acquire 80% stake in Downtown Dubai district cooling assets and concession from Emaar District Cooling for AED 2.5 billion on March 26, 2020. Post completion, Emaar District Cooling will retain the remaining 20% stake in Downtown Dubai district cooling assets. Furthermore, National Central Cooling Company PJSC has also entered into a common terms agreement and credit facility agreement for a new term loan facility of $692 million (AED 2.54 billion), which will be used to finance the transaction and has a termination date of March 26, 2025. HSBC Bank Middle East Limited is the arranger and underwriter, while HSBC Bank Plc is the facility agent and global agent for the facility. Transaction valuation represents an EV/EBITDA multiple of 16.5 times on historical results. For the year 2019, Downtown Dubai district cooling assets contributed AED 327 million in revenue and AED 187 million in EBITDA. National Central Cooling Company will have majority at the board of the operating company for the assets acquired.
HSBC Bank Middle East Limited acted as financial advisor, Henry Storrar and Nicholas Stuart of Allen & Overy LLP acted as legal advisor, whereas CBRE acted as real estate advisor to National Central Cooling Company PJSC. Standard Chartered PLC (LSE:STAN) acted as financial advisor while Linklaters LLP acted as legal advisor to Emaar Properties PJSC (DFM : EMAAR), parent company of Emaar District Cooling. Latif, Qudeer and Choudhry, Ahmed of Clifford Chance acted as legal advisor to HSBC Bank Middle East Limited in the transaction.
National Central Cooling Company PJSC (Tabreed), a subsidiary of Mubadala Development Company PJSC, is a United Arab Emirates-based company engaged in the provision of cooling solutions to government, commercial, residential and private organizations across the Middle East. The Company is organized into two segments: The Chilled Water segment, which constructs, owns, assembles, installs, operates and maintains cooling and conditioning systems, as well as distributes and sells chilled water for use in district cooling technologies, and the Value chain business segment, which is involved in ancillary activities relating to the expansion of Companyâs chilled water business. Tabreedâs portfolio includes 66 plants across the Gulf Cooperation Council (GCC). The Companyâs affiliates and subsidiaries include Qatar District Cooling Company QCSC and Bahrain District Cooling Company BSC, among others.
National Central Cooling Company PJSC entered into an agreement to acquire 80% stake in Downtown Dubai district cooling assets and concession from Emaar District Cooling for AED 2.5 billion.
NATIONAL CENTRAL COOLING COMPANY 
