Abu Dhabi’s Tabreed, the world’s leading district cooling company, and CVC DIF, the infrastructure strategy of private markets manager CVC, are partnering to acquire PAL Cooling Holding from Abu Multiply Group for AED 3.8 billion (approximately US$1 billion).
PAL Cooling has three long-term concessions in Abu Dhabi’s main island area and five on Al Reem Island. These concessions are serviced by five existing district cooling plants and associated networks with connected capacity of 182,000 refrigeration tons (RT) as of December 2024.
The company has an additional plant under construction and three more are in the planning phase. Together, the nine plants and eight concessions are expected to represent approximately 600,000 RT.
The acquisition is subject to customary regulatory approvals.
Dr Bakheet Al Katheeri, Chairman of Tabreed, commented: “Tabreed is always looking to the future and ensuring we remain agile. The acquisition of PAL Cooling with CVC DIF aligns perfectly with our strategic objectives and readiness to adapt to Abu Dhabi’s ambitious real estate projects.
“This year has been historic for Tabreed, with ventures like our Palm Jebel Ali JV and continued growth in Abu Dhabi. These steps position us to meet the UAE’s rising demand for sustainable cooling, driven by population growth and decarbonisation targets.”
Khalid Al Marzooqi, Chief Executive Officer of Tabreed, added: “This is turning out to be a truly pivotal year for Tabreed. As we enter a new phase of growth in Abu Dhabi alongside partners, CVC DIF, the benefits brought by this acquisition will be substantial.
“The acquisition serves to strengthen our already investment-grade status with safe, long-term concession agreements and assured future growth, evidenced by current and planned developments on Reem Island.”
Founded in 2006, PAL’s long-term concession agreements include partnerships with master developers like Aldar Properties, Modon and Imkan. It is strategically positioned on Al Reem Island, which is now fully part of the ADGM free zone, and is poised to benefit from the expected development ramp-up, with future network expansion already licensed by Abu Dhabi’s Department of Energy.
Samia Bouazza, Group CEO and Managing Director of Multiply Group, said: “The monetisation of PAL Cooling Holding is a deliberate step in our portfolio optimisation strategy, aimed at delivering superior returns to our shareholders. It reflects our ability to realise significant value from our assets while enhancing liquidity to fuel Multiply Group’s next phase of growth.”
CVC DIF’s investment focus and experience spans key sectors including Energy Transition, Digital Infrastructure, Utilities and Transport – areas that are critical to Tabreed’s strategic vision. Its expertise and investment approach makes CVC DIF an ideal partner for a transformative project of this scale.
Gijs Voskuyl, Managing Partner at CVC DIF, said: “PAL Cooling services its clients under long-term, concession-based contracts in a fast-growing urban environment. The company has a strong track record of developing and constructing high-quality and electrified district cooling plants to deliver reliable, energy-efficient cooling solutions.
“Building on CVC DIF’s long-term track record in the sector, we are delighted to partner with Tabreed, a leading district cooling company in the Middle East. Together, we are convinced that PAL Cooling is a high-quality investment that will provide our investors with solid returns, while offering the potential for long-term growth and sustainable value creation.”
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