Tabreed Completes Two Major Transactions To Enhance Growth And Operational Capacity

Tabreed has announced the completion of two major infrastructure deals, marking a significant step in its growth strategy. These transactions enhance Tabreed's long-term business model, supported by concessions. In collaboration with CVC DIF, Tabreed acquired PAL Cooling Holding from Multiply Group after receiving regulatory approvals.

In the past month, Tabreed also secured a concession agreement with Dubai Holding Investments to supply district cooling services to Palm Jebel Ali, a highly anticipated development in Dubai. These developments significantly boost Tabreed’s operational capacity and diversify its concession portfolio, ensuring better cash flow visibility over the long term.

The acquisition of PAL Cooling is valued at AED3.87 billion and adds around 600,000 refrigeration tonnes (RT) of capacity across eight exclusive concessions on Abu Dhabi’s main island and Al Reem Island. This area is now fully part of the ADGM free zone. The portfolio includes five operational plants, with one under construction and three in advanced planning stages.

This acquisition increases Tabreed’s connected capacity by 13 percent to 1.55 million RT. It introduces long-term contracts averaging 25 years with high-quality clients such as Aldar, Modon, and Imkan. "Closing this acquisition demonstrates Tabreed’s commitment to sustainable growth," stated Dr Bakheet Al Katheeri, Chairman of Tabreed.

Khalid Al Marzooqi, CEO of Tabreed, added that the transaction strengthens their earnings profile and operational presence in Abu Dhabi. He emphasized that it adds stable contracts with reputable developers and enhances their growth platform for the future.

Strategic Partnerships for Future Growth

Separately, Tabreed finalised a district cooling concession with Dubai Holding Investments for Palm Jebel Ali. This AED1.5 billion project will be executed in phases through a joint venture where Tabreed holds 51 percent and Dubai Holding Investments holds 49 percent. It is expected to deliver 250,000 RT of cooling capacity.

Under both agreements, Tabreed will operate and maintain all assets. The transaction structures ensure capital efficiency; the PAL Cooling acquisition is funded through equity contributions from both partners and non-recourse project-level debt. Meanwhile, Palm Jebel Ali is being delivered through a joint venture fully consolidated by Tabreed.

Financial Performance and Future Outlook

PAL Cooling has shown strong financial performance with a 7.5 percent revenue CAGR and an average EBITDA margin of about 60 percent over the past three years. Approximately 60 percent of revenues come from fixed capacity charges under long-term agreements, providing stable cash flows.

These transactions align with Tabreed’s broader financial strategy. The company recently distributed its first-ever interim dividend, reflecting confidence in its robust balance sheet and earnings outlook. Adding these scalable assets strengthens its ability to sustain shareholder returns over time.

With inputs from WAM