DUBAI, March 15 (Reuters) - Dubai state developer Nakheel is
considering the sale of its district cooling assets, three
sources familiar with the matter told Reuters, as real estate
companies in the United Arab Emirates sell assets amid the
Nakheel, the developer of the emirate's palm-shaped islands,
has hired financial advisory Synergy Consulting to manage the
process, said two of the sources who declined to be named as the
matter was not public.
Nakheel declined to comment and Synergy did not respond to a
request for comment.
Dubai-listed National Central Cooling Co (Tabreed)
and Emirates Central Cooling Systems Corp (Empower) have
expressed interest in Nakheel's deal, the sources said.
Tabreed said in a statement, that as a listed company it
cannot comment on market rumours or speculation. Empower did not
immediately respond to requests for comment.
One of the sources said the deal, which could be valued at
around one billion dirhams ($272 million), is structured as a
30-year concession agreement.
District cooling firms deliver chilled water through
insulated pipes to offices, as well as to industrial and
Nakheel's district cooling assets include 20 units around
Dubai with a total capacity of 100,000 to 120,000 tonnes of
Separately, Dubai is considering selling a stake in the
cooling system operations at Dubai International Airport and has
hired Standard Chartered to arrange the process, sources
familiar with the matter told Reuters in November.
Nakheel, which was forced into a massive debt restructuring
following Dubai's 2009-2010 real estate crash, last year slashed
salaries by as much as 50%.
Dubai's real estate sector, sluggish for most of the past
decade, has suffered during the pandemic, which led many foreign
workers to leave and worsened oversupply.
Emaar Properties, Dubai's largest developer, sold
a stake in its downtown cooling business last year for $675
million, while Abu Dhabi's Aldar Properties agreed to
sell two district cooling assets in December.
($1 = 3.6728 UAE dirham)
(Reporting by Davide Barbuscia and Hadeel Al Sayegh; editing by
Ramakrishnan M. and Jason Neely)