The United Development Company (UDC), an urban development and investment firm listed on the Qatar Stock Exchange, has approved the sale of a 40% stake in the Qatar District Cooling Company (Qatar Cool), according to an exchange filing.

UDC, which is the master developer of The Pearl and Gewan Islands in Qatar, will sell the stake to the country’s sovereign wealth fund, the Qatar Investment Authority (QIA) for 800 million riyals ($216.6 million). UDC will retain a 51.06% stake in Qatar Cool.

The company said the move mark a pivotal step in its strategic growth plan and commitment to enhancing shareholder value, with this financial boost enabling UDC to invest in core projects within The Pearl and Gewan Islands.

UDC added the partnership with QIA will enhance Qatar Cool’s operational efficiency and competitiveness.

The company has an authorised share capital of QR 3.5 billion and total assets of QR 19.5 billion as of 31 March 2024, with investments in real-estate development, property management, infrastructure and utilities, district cooling, maritime and hospitality.

(Reporting by Bindu Rai, editing by Seban Scaria)