Abu Dhabi-based property development company Aldar Properties will be selling a 100 percent stake in Saadiyat District Cooling LLC (SDCL) and an 85 percent stake in Saadiyat Cooling LLC (SCL) to National Central Cooling Company PJSC (Tabreed) for a total value of $262.2 million.
Both assets were acquired by Aldar in 2018 from Tourism Development and Investment Company (TDIC) as part of its wider asset acquisition strategy. The firm is expected to earn a healthy 40 percent internal rate of return (IRR) on the original equity investment to acquire SDCL as well as SCL back in 2018.
The Abu Dhabi-based developer is expected to utilize the proceeds from the disinvestment to further grow its diversified portfolio of high-quality income-generating property.
“We are pleased to be deepening our long-standing relationship with Tabreed with this win-win transaction. This divestment crystalizes significant value for Aldar shareholders and is a clear example of our strategy for value creation in action. Aldar is pursuing attractive acquisitions, implementing an active approach to asset management and continuously recycling capital to invest in future growth. In line with this strategy, Aldar will build on its strong financial and operating performance in 2020 by further deploying capital in the long-term growth of our two core real estate businesses – Asset Management and Development Management.”
Sharing his excitement about the deal, Tabreed’s Chief Executive Officer, Bader Saeed Al Lamki stated that “I am delighted to be signing this agreement today, as we continue to accelerate our growth trajectory and consolidate our position in the UAE. As an industry leader, our strategic partnerships have allowed Tabreed to grow into an international powerhouse in district cooling, with over 22 years of experience and investments across six countries. Our partnership with Aldar is one such example, and this transaction is a testament to the strong relationship we enjoy with them. Moving forward, we are well placed – both financially and operationally – to continue to take advantage of further growth opportunities in the UAE market and beyond.”