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

By Hadeel Al Sayegh

DUBAI, Oct 13 (Reuters)Dubai’s Majid Al Futtaim (MAF), which develops shopping malls across the Middle East, is weighing the sale of its district cooling unit, 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, declining to be named as the matter is not public.

MAF, which also operates the Middle East franchise of French retailer Carrefour CARR.PA, in a statement on Tuesday said it continually assesses its business portfolio to ensure they ‘remain 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. As always, we will communicate changes within our business if and when they are confirmed,” the statement said.

HSBC declined to comment.

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

A second source said that MAF had sounded out potential investors over the summer, ahead of an official sale. The source said the company has neither disclosed financial terms nor the scope of the deal, which could be worth around 1 billion dirhams.

($1 = 3.6728 UAE dirham)

(Reporting by Hadeel Al Sayegh, editing by Louise Heavens)

((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))

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