Dubai’s Majid Al Futtaim hires HSBC for sale of district cooling unit

Dubai’s Majid Al Futtaim (MAF), which develops shopping malls across the Middle East, is putting its district cooling unit up for sale, four sources with knowledge of the matter told Reuters.

District cooling firms deliver chilled water via insulated pipes to cool offices, industrial and residential buildings.

MAF has hired HSBC to tender the deal, said the sources, who declined to be named as the matter is not public.

MAF, which also operates the Middle East franchise of Carrefour, in a statement on Tuesday said it continually assesses its business portfolio to ensure it remains “fit for purpose and positioned for long term sustainable growth. “Accordingly, we explore new opportunities on a regular basis, carrying out thorough assessments before committing to any course of action.”

MAF added that

it

would communicate any changes to its business. HSBC declined to comment.

One of the sources said MAF could seek around 500 million dirhams ($136.14 million) for the unit, which comprises chillers connected to its hotels and shopping malls.

A second source said that MAF had sounded out potential investors over the summer, adding that the

Majid Al Futtaim is the largest mall operator in the Middle East.

company had yet to finalize exactly which assets would be included in the deal, which the source said could be worth around 1 billion dirhams. The sources said the sale will attract the attention of UAE district cooling firm Tabreed, which bought an 80 percent stake in Emaar Properties’ Downtown Dubai district cooling business earlier this year.