Empower, also known as Emirates Central Cooling Systems Corporation, one of the largest district cooling services providers in the world, has signed an acquisition agreement of Nakheel’s district cooling unit. The acquisition agreement stipulates that Empower will acquire all the assets of the Nakheel’s district cooling systems that serves more than 18,000 customers in 17 major urban projects through 19 plants across Dubai. The district cooling unit has a capacity of 110,000 refrigeration tons (RT) and a total value of AED 860 million. As per the agreement, Empower will also manage and operate them and carry out all the activities, functions, operations and obligations.
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive Officer of Emirates Airlines and Group, and Chairman of the Dubai Supreme Council of Energy, Emirates Central Cooling Systems Corporation (Empower), His Excellency (HE) 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 the Board of Directors of Nakheel, and His Excellency Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority and Chairman of the Board of Directors of Empower were all present during the signing of the agreement. The acquisition agreement was signed by Ahmad bin Shafar, CEO of Empower, and Naaman Atallah, CEO of Nakheel.
His Excellency Mohammed Ibrahim Al Shaibani, Chairman of Nakheel, commented that 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.
His Excellency Saeed Al Tayer, Chairman of the Board of Directors of Empower, said that the acquisition agreement is in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote sustainable development, and with Dubai Demand Side Management Strategy 2030, for which district cooling is one of its foundations. District cooling contributes to enhancing energy efficiency in Dubai. This agreement is a new bright milestone for Empower success and a consolidation of its local, regional and global leadership as a model of growth and prosperity of all industrial sectors in Dubai. These sectors are quite rich with investment opportunities and are definitely able to permanently develop and expand the scope of investment activities that relate to the present and future of the vital district cooling sector.
“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”, his excellency 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,” HE Al Tayer added.
Ahmad bin Shafar, CEO of Empower, stated that the company’s acquisition of the Nakheel’s entire district cooling activities constitutes an important achievement for the company, which will serve some of the prestigious developments in Dubai. Empower has been consistently growing its portfolio of projects and addition of the Nakheel projects will further diversity Empower’s portfolio which will include, The Gardens, Nakheel Mall, Dragon Mart, Souk Al Marfa, Jumeirah Islands, Circle Mall, Al Khail Avenue and others.
He explained that Empower has always focussed on investing in advanced district cooling infrastructure in line with requirements, and to provide seamless services to its customers and this strategy has helped Empower in achieving the leadership position in the industry. Empower will continue providing its world-class district cooling services to the new customers of Nakheel’s projects. Bin Shafar also added, that besides this deal, Empower is also exploring various other opportunities to acquire more district cooling assets.
Bin Shafar also confirmed that the financing of this acquisition deal will be through a mix of company’s funds and finance from local and international banks with which Empower is having close strategic relations.