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The National Central Cooling Company, also known as Tabreed, is buying two district cooling units on Saadiyat Island from Aldar Properties for Dh963 million ($262m).
The transaction is expected to generate an internal rate of return of over 40 per cent on the original equity investment, Aldar said in a statement to the Abu Dhabi Securities Exchange on Wednesday, where its shares trade. Aldar, Abu Dhabi’s biggest listed developer, acquired the two assets from the Tourism Development and Investment Company in 2018.
“This divestment crystalises significant value for Aldar shareholders and is a clear example of our strategy for value creation in action,” Talal Al Dhiyebi, chief executive of Aldar Properties, said. “Aldar is pursuing attractive acquisitions, implementing an active approach to asset management and continuously recycling capital to invest in future growth.”
Aldar to sell two district cooling units to Tabreed for $262m
ABU DHABI, December 23, 2020 Leading UAE developer Aldar Properties has signed an agreement with National Central Cooling Company (Tabreed) to sell two of its district cooling assets on Abu Dhabi’s Saadiyat Island for a total consideration of AED963 million ($262 million). Aldar had purchased a 100 per cent stake in Saadiyat District Cooling (SDCL) and an 85 per cent stake in Saadiyat Cooling (SCL) as part of a wider acquisition of assets from Tourism Development and Investment Company (TDIC) in 2018. The transaction is expected to complete in the first quarter of 2021, unlocking an internal rate of return of over 40 percent on the original equity investment by Aldar, who has actively managed the asset since its acquisition in 2018, said the Abu Dhabi developer in a statement.
Aldar sells 2 district cooling units to Tabreed
Web report/Dubai
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Units sold for Dh963m will have an internal rate of return of over 40%
Abu Dhabi-based Aldar Properties has signed an agreement to divest its two district cooling assets on Saadiyat Island to National Central Cooling Company (Tabreed) for Dh963 million.
The transaction is expected to complete in the first quarter of 2021 with an internal rate of return of over 40 per cent. Proceeds will be used to finance further growth of Aldar’s diversified portfolio of high-quality income-generating property.
Aldar had purchased a 100 per cent stake in Saadiyat District Cooling (SDCL) and an 85 per cent stake in Saadiyat Cooling (SCL) as part of a wider acquisition of assets from Tourism Development and Investment Company (TDIC) in 2018.
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