Abu Dhabi-based National Central Cooling Company (Tabreed) has acquired an 80 per cent stake in Emaar Properties’ Downtown Dubai district cooling business at a cost of AED2.48bn ($675m).

Dubai-based developer Emaar will maintain the remaining 20 per cent share in the district cooling operation as part of a long-term partnership with Tabreed, the Abu Dhabi-based firm said in a statement.

The district cooling scheme provides 150,000 RT (refrigeration tonnes) of contracted capacity through a network that distributes chilled water produced in three interconnected district cooling plants.

MEED understands the transaction covers a fourth plant that is under construction.

The acquisition takes Tabreed’s presence in Dubai to 278,801 RT.

It also increased its total capacity by 12.6 per cent to 1,338,602 RT, and its total number of plants to 83.

The transaction “represents a major milestone in Tabreed’s history”, the firm said, adding that it reinforces its position as the cooling provider of choice for landmark developments in the region and beyond.

Downtown Dubai is home to the Burj Khalifa, Dubai Mall, Dubai Fountain, Dubai Opera, and other landmark residential, commercial and hospitality developments.

Prior to the transaction, Tabreed’s portfolio included the Dubai Metro, Abu Dhabi Global Market, Etihad Towers, Yas Island, Aldar headquarters, World Trade Centre Abu Dhabi, Cleveland Clinic Abu Dhabi, The Sheikh Zayed Grand Mosque, Bahrain Financial Harbour, Knowledge Oasis Muscat and the Jabal Omar Project in Mecca.

In February last year, Tabreed signed an agreement to provide 200,000 RT of district cooling capacity for the Andhra Pradesh Capital Region Development Authority (APCRDA) in India, its first outside the GCC.

MEED reported in October 2018 that Tabreed had raised $500m with a seven-year sukuk (Islamic bond).

Tabreed also arranged new bank facilities worth up to AED1.5bn ($409m). This, together with the proceeds from the sukuk, was used to refinance AED2.8bn of corporate debt.

In 2017, French energy firm Engie completed the acquisition of a 40 per cent share in Tabreed.

Abu Dhabi-based Mubadala Investment Company maintains a 42 per cent share in the firm.