Dubai-listed district cooling company Tabreed has signed a $83.4 million (AED 306.29 million) deal to design, construct and operate a district energy facility at Capital Med, a healthcare megacity project in Cairo.
The company said its wholly owned subsidiary Tabreed Company for Central Cooling Services LLC had signed a long-term concession agreement with Egyptians for Health Care Services SAE, with a capital investment of EGP 1.6 billion (AED 306.4 million or $83.4 million) for the heating and cooling facility at Capital Med, East Cairo.
“The assets to be developed in Egypt are an important, strategic step for Tabreed and its regional expansion plans,” the Abu Dhabi-based company said in a statement to Dubai Financial Market (DFM).
“We do not expect this transaction will materially impact Tabreed’s existing operations or the rights of its shareholders,”
Construction costs will be financed through existing company reserves, Tabreed said.
The district energy plant is to be designed in conjunction with Shaker Consultancy to meet cooling and heating needs, with 19,500 Refrigeration Tons (RT) of cooling required for the first phase and up to 30,000 RT for the entire development.
Tabreed entered the Egyptian market in February this year, following the announcement of its project at Cairo’s new D5M mall.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)