UAE’s National Central Cooling Co to Expand Operations in India
The UAE’s National Central Cooling Co., also known as Tabreed, has partnered with International Finance Corp., which is part of the World Bank Group, to expand operations in India through a holding company. Under the partnership, Tabreed India’s ownership will be transferred to a holding company established in Singapore, wherein Tabreed will hold a 75% stake while IFC will have the remaining 25% stake. Tabreed builds, owns and operates cooling infrastructure for real estate developers and other end users, including data centres, integrated cold chains and urban buildings. The new holding company will see initial equity commitments of $100 million from the two partners,with a mandate to invest up to $400 million in projects for the next five years, targeting a portfolio of about 100,000 refrigeration tonnes servicing industrial, commercial and retail developments. “We are committed to providing efficient cooling to cities and have been actively supporting the initiatives undertaken by the government. In parallel, we have engaged with several top-tier real estate developers to evaluate project opportunities focusing on specific micro-markets in six key cities," Sudheer Perla, Country Manager, India, Tabreed. Tabreed offers cooling solutions to iconic developments such as Burj Khalifa, Sheikh Zayed Grand Mosque and Louvre Abu Dhabi. Perla said the partnership will help the company build on its operations in India, to provide more energy-efficient, end-to-end cooling solutions via outsourced utility models for real estate developments, new urban master plans, and redevelopments. “At this point in time through this partnership with IFC, we’re looking at investing in projects for up to $1 billion, which essentially would mean that through a concession kind of a model, we will be able to provide a cooling service for about 15-16 million square feet of build-up area," Perla added. District cooling is increasingly being considered as a necessity by the government for urban master plans and smart city projects. IFC and Tabreed have agreed on an investment eligibility criterion which, beyond typical financial requirements, also includes a robust environmental, social and governance framework while developing district energy projects. With capital-intensive infrastructure requirements, the intention is to raise debt through project finance for individual projects.
Tags : INTERNATIONAL World Bank Group UAE National Central Cooling Tabreed International Finance Corp Sudheer Perla Sheikh Zayed Grand Mosque Louvre Abu Dhabi capital-intensive infrastructure