Dubai: Union Properties announced on Sunday the sale of its entire stake in Emicool to Dubai Investments, which already owned a 50 per cent stake in Emicool, for Dh500 million.

Union Properties said in a statement it will invest the proceeds from the transaction in enhancing its investment portfolio, expanding its operations and projects, and supporting its growth strategy.

The company said it had received several offers to sell its shares in Emicool, a district cooling services provider, from various local and international companies. It then notified Dubai Investments of its intention to sell its entire stake. As per Emicool’s articles of association, the partner had priority to buy any shares offered for sale.

Union Properties earlier this month announced it was in the final stages of selling its stake in Emicool, and was in the process of finalising a deal. It had not announced a buyer at the time.

Ahmad Khouri, group chief executive officer of Union Properties, said on January 10 that the sale will allow the company to focus on core operations and tap into new sectors at a time when it is undergoing growth.

The final legal proceedings of the transaction were concluded on January 18, giving Dubai Investments full ownership of Emicool.

“After finalising the development of the company’s long-term strategy in the second half of last year and following the successful launch of several new projects and subsidiaries, the sale of our entire stake in Emicool is part of our new strategic investment approach,” said Nasset Butti Bin Yousuf, chairman of Union Properties.

As part of this diversification strategy, Union Properties also bought a stake in an Egyptian property developer. Union Properties announced in mid-January that one of its units has acquired a 5.68 per cent stake in shares of Palm Hill Development, which is listed in both Cairo and London.

Union Properties’ share prices were not much changed, rising 0.4 per cent on Sunday on the Dubai bourse to Dh0.994.