Dubai Investments, a listed investment company, announced the acquisition of a 50% stake in Emirates District Cooling (Emicool).
The share was purchased for $136.1m (AED500m) from Union Properties, which revealed its intention to sell its stake in the district cooling company earlier this month.
Following the acquisition, Emicool is fully owned by Dubai Investments.
Commenting on the development, Khalid Bin Kalban, managing director and chief executive officer of Dubai Investments, said: "The transaction strengthens Dubai Investments’ portfolio in the utility service domain, growing its asset base, and is expected to boost future profitability and deliver value to shareholders.
"Emicool has carved a niche in the district cooling sector, and Dubai Investments’ acquisition will spur its growth and expansion plans amidst surging demand in the region."
Following the acquisition, Dubai Investments' earnings before interest, taxes, depreciation, and amortisation (EBITDA) will rise by $30m (AED110m), and assets will increase by $490m (AED1.8bn).
Kalban said Dubai Investments' liabilities would increase by $326.7m (AED1.2bn).
Emicool provides district cooling services to neighbourhoods such as Dubai Motor City, Uptown Mirdif, and Damac Hills, and expects to increase its plant capacity to 500,000 refrigeration tonnes (TR) by 2020.