Tabreed is offloading half of its ownership in its TPI: The UAE’s National Central Cooling Company (Tabreed) will sell 50% of its ownership in subsidiary Tabreed Parks Investments (TPI) to a DH Investments’ subsidiary for AED 99.8 mn (c. USD 21.7 mn), according to a disclosure (pdf) released on Friday. DH Investments is part of Dubai Holding, the investment vehicle of Dubai‘s ruler Sheikh Mohammed bin Rashid Al Maktoum.

What we know: The AED 99.8 mn transaction is expected to close this month, according to the disclosure, which said that Tabreed will retain a 50% stake in TPI post sale. It is set to help increase cash balance by AED 99.8 mn and increase other income and gain by circa AED 80 mn to AED 100 mn before taxes. However, Tabreed said it expects the transaction to result in a lower net income by c. AED 9 mn for the company by 3Q 2023.

Where the funds are going: The proceeds will be channeled to finance further growth on Tabreed’s portfolio in key markets, the disclosure said, without providing details on the planned markets or plans by the district cooling company.

Tabreed already started expansions: The company increased its international footprint earlier this year by making a grand entry in India under a partnership with Tata Realty and Infrastructure Limited. It began operating the cooling infrastructure in July.

About TPI: TPI’s assets include district cooling plants and an associated network which provides chilled water services to multiple theme parks and related facilities in Dubai, according to the disclosure.