Tabreed And CVC DIF Join Forces To Acquire PAL Cooling From Multiply Group In Abu Dhabi

CVC DIF, a strategy of CVC, and Tabreed, a leader in district cooling, have partnered to acquire PAL Cooling Holding from Multiply Group in Abu Dhabi. This acquisition, valued at around AED3.8 billion, involves three long-term concessions on Abu Dhabi's main island and five on Al Reem Island. The deal awaits standard regulatory approvals.

The existing infrastructure includes five sustainable district cooling plants with a capacity of 182,000 refrigeration tonnes (RT) as of December 2024. An additional plant is under construction, with three more planned. These developments are expected to bring the total capacity to approximately 600,000 RT across nine plants and eight concessions.

Dr. Bakheet Al Katheeri, Chairman of Tabreed, stated that the acquisition aligns with their strategic goals and readiness for Abu Dhabi's real estate projects. He noted that this year has been significant for Tabreed due to ventures like the Palm Jebel Ali JV and growth in Abu Dhabi. These initiatives aim to meet the UAE’s increasing demand for sustainable cooling solutions.

Gijs Voskuyl, Managing Partner at CVC DIF, highlighted PAL Cooling's success in providing reliable cooling through long-term contracts in rapidly growing urban areas. He praised the company's history of developing high-quality district cooling plants that offer energy-efficient solutions. Voskuyl expressed enthusiasm about partnering with Tabreed to invest in PAL Cooling.

The signing ceremony took place at Multiply’s headquarters in Abu Dhabi. Key figures present included Samia Bouazza from Multiply Group, Khalid Al Marzooqi from Tabreed, and Özgür Önder from CVC Middle East. Dr. Al Katheeri also attended the event.

Voskuyl added that PAL Cooling represents a valuable investment opportunity with potential for growth and sustainable value creation. He emphasized the partnership's potential to deliver solid returns for investors while contributing positively to the environment.

This collaboration between CVC DIF and Tabreed signifies a strategic move towards enhancing infrastructure in Abu Dhabi. It reflects both companies' commitment to supporting sustainable development in line with regional goals for decarbonisation and urban expansion.

The acquisition not only strengthens Tabreed's position but also aligns with broader efforts to address environmental challenges through innovative cooling solutions. As demand grows, such partnerships are crucial for meeting future needs efficiently and sustainably.

With inputs from WAM