Dubai-listed National Central Cooling Co. is in exclusive talks to buy regional mall operator Majid Al Futtaim’s cooling assets, Reuters reported citing two sources close to the matter.
The firm, also known as Tabreed, has appointed Standard Chartered to advise on the transaction, the sources, who declined to be named because the matter is not public, told Reuters.
Tabreed and Majid Al Futtaim did not immediately respond to requests for comment. Standard Chartered declined to comment.
District cooling firms deliver chilled water via insulated pipes to cool offices and industrial and residential buildings.
HSBC was advising Majid Al Futtaim, which develops shopping malls across the Middle East, Reuters reported in 2020.
One of the sources, who spoke to Reuters in 2020, had said Majid Al Futtaim could seek about 500 million dirhams ($136 million) for the unit, which comprises chillers connected to its hotels and shopping malls.
Tabreed has been on a shopping spree during the COVID-19 pandemic, snapping up assets in locations such as Abu Dhabi’s Saadiyat Island, home to a branch of the Louvre museum.
It also acquired an 80 percent stake in Dubai developer Emaar’s downtown district cooling business for 2.48 billion dirhams.
Demand for district cooling, which typically grows with new property and commercial developments, has stayed strong in the United Arab Emirates, which has blisteringly hot summers.
Dealmaking in the region has boomed over the past year, fueled by initial public offerings and acquisitions.
Saudi Aramco and other Gulf oil producers have followed Abu Dhabi with plans to raise funds by selling stakes in energy assets, capitalizing on a rebound in crude prices to attract foreign investors.
Elsewhere, Anghami, a Middle East rival to Spotify, was acquired last year by blank-check company Vistas Media Acquisition Co. and listed on New York’s Nasdaq exchange this month.
— Reuters
