We present results of direct numerical simulation of turbulence modification and heat transfer in turbulent particle-laden channel flow and show an enhancement of the heat transfer and a small increase in the friction velocity when heavy inertial particles with high specific heat capacity are added to the flow. The simulations employ a coupled Eulerian-Lagrangian computational model in which the momentum and energy transfer between the discrete particles and the continuous fluid phase are fully taken into account. The effect of turbophoresis, resulting in an increased particle concentration near a solid wall due to the inhomogeneity of the wall-normal velocity fluctuations, is shown to be responsible for an increase in heat transfer. As a result of turbophoresis, the effective macroscopic transport properties in the region near the walls differ from those in the bulk of the flow. To support the turbophoresis interpretation of the enhanced heat transfer, results of simulations employing no particle-fluid coupling and simulations with two-way coupling at considerably lower specific heat, or considerably lower particle concentration are also included. The combination of these simulations allows distinguishing contributions to the Nusselt number due to mean flow, turbulent fluctuations and explicit particle effects. We observe an increase in Nusselt number by more than a factor of two for heavy inertial particles, which is the net result of a decrease in heat transfer by turbulent velocity fluctuations and a much larger increase in heat transfer stemming from the mean temperature difference between the fluid and the particles close to the walls.