Abu Dhabi developer says divestment will offer rate of return of 40%
Abu Dhabi’s Aldar Properties is selling two of its district cooling facilities on Saadiyat Island to cooling company Tabreed for AED 963 million ($262 million).
The divestment is part of its strategy to pursue profitable investment exits and redeploy capital into growth opportunities, according to the developer.
The sale is expected to complete in the first quarter of 2021, producing a rate of return of 40 percent on the original equity investment by Aldar.
The Abu Dhabi-listed company acquired 100 percent of Saadiyat District Cooling LLC (SDCL) and an 85 percent stake in Saadiyat Cooling LLC (SCL) in 2018 as part of a wider acquisition of assets from the Tourism Development and Investment Company (TDIC), it said in a statement to Abu Dhabi Securities Exchange (ADX).
Aldar’s CEO Talal Al Dhiyebi said: “We are pleased to be deepening our long-standing relationship with Tabreed with this win-win transaction.
“This divestment crystalises 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.”
Bader Saeed Al Lamki, Tabreed’s CEO, said: “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 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.”
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