Tabreed and CVC DIF have teamed up to acquire PAL Cooling Holding from Multiply Group in a deal valued at about Dhs3.8 billion, signaling a meaningful strategic consolidation in Abu Dhabi’s district cooling sector. The transaction encompasses eight long-term concessions powered by five district cooling plants across the emirate, with an anticipated connected load near 600,000 refrigeration tons once ongoing and planned facilities are brought online. The acquisition remains contingent on standard regulatory clearances, underscoring the process that typically accompanies large infrastructure deals in the UAE. PAL Cooling, established in 2006, stands as a significant operator in the UAE’s district cooling landscape, serving prominent developers including Aldar Properties, Modon, and Imkan. Its asset base is concentrated in strategic locations such as Al Reem Island, which is currently integrated into the ADGM free zone framework. In remarks aligned with the deal, Dr. Bakheet Al Katheeri, chairman of Tabreed, framed the acquisition as a precise fit with Tabreed’s strategic direction and its readiness to support Abu Dhabi’s ambitious real estate initiatives, highlighting how the move positions the company to meet rising UAE demand for sustainable cooling driven by rapid population growth and decarbonization targets. CVC DIF managing partner Gijs Voskuyl described the investment as high-quality, with potential for long-term growth and returns, noting that PAL Cooling operates under long-term concession-based contracts within a rapidly expanding urban setting. The transaction is described as a pivotal step for Tabreed’s portfolio, with Tabreed CEO Khalid Al Marzooqi emphasizing that the new plants will be managed and maintained by leading global experts in sustainable cooling. Özgür Önder, head of CVC Middle East, commented that the collaboration with Tabreed reflects CVC’s commitment to backing sustainable, mission-critical infrastructure across the UAE. Multiply Group’s leadership, represented by CEO Samia Bouazza, stated that the deal aligns with the company’s strategy of portfolio optimization and liquidity enhancement, highlighting how the transaction enables significant asset value realization while providing liquidity to accelerate Multiply Group’s next growth phase. The agreement was formalized at a signing ceremony in Abu Dhabi, attended by executives from Multiply, Tabreed, and CVC DIF.
Deal Details and Strategic Rationale
The transaction, valued at approximately Dhs3.8 billion, brings together a combination of long-term concessions and physical assets that are central to Abu Dhabi’s district cooling strategy. The eight concessions referenced in the agreement are serviced by five district cooling plants, collectively forming a network poised to deliver robust cooling capacity across key development zones. The projected connected load of around 600,000 refrigeration tons represents a substantial scale of operation that would be realized as ongoing projects reach completion and newly planned facilities come on line. This scale is particularly notable within the UAE’s climate context, where efficient and reliable cooling infrastructure is a strategic enabler for both existing communities and new urban developments.
The deal’s structure—combining long-term concession-based contracts with high-quality physical assets—aligns with Tabreed’s broader business model, which emphasizes stable, contract-backed revenue streams and strategically located cooling capacity. By integrating PAL Cooling’s portfolio into Tabreed’s existing operations, the enlarged platform is positioned to leverage synergies across asset management, operations, and customer relationships. The collaboration with CVC DIF adds a sophisticated, infrastructure-focused investor with a track record of supporting large-scale, capital-intensive projects. The combination of Tabreed’s operational expertise in sustainable cooling and CVC DIF’s capital and strategic oversight is expected to enhance the efficiency and resilience of the concessions, while providing a framework for disciplined expansion in line with Abu Dhabi’s urban development roadmap.
From a strategic perspective, the acquisition appears designed to strengthen Tabreed’s footprint in Abu Dhabi, one of the world’s leading hubs for district cooling and energy efficiency initiatives. PAL Cooling’s portfolio includes assets situated in high-value development corridors, notably Al Reem Island, which is associated with the Abu Dhabi Global Market (ADGM) free zone ecosystem. The strategic location of these assets supports a broader vision of delivering reliable cooling services to premier real estate projects and mixed-use developments that demand high service quality and long-term reliability. The deal’s timing also reflects a broader industry trend toward consolidating district cooling assets under larger, more financially robust platforms capable of sustaining long-term investments in plant modernization, maintenance, and expansion to meet growing demand.
In terms of regulatory considerations, the transaction remains subject to standard regulatory approvals that govern major corporate acquisitions and infrastructure deals in the United Arab Emirates. The process will likely involve scrutiny by national and local authorities to ensure consistency with competition, public-interest considerations, and sector-specific regulatory requirements. While regulatory reviews can introduce a degree of uncertainty and timeline variability, the parties have signaled their commitment to a smooth closing process, recognizing the deal’s potential to deliver long-term benefits to customers, developers, and the broader energy transition agenda in the region.
Asset Portfolio and Geographic Footprint
PAL Cooling has established itself as a key participant in the UAE’s district cooling ecosystem since its founding in 2006. Its business model centers on delivering cooling services to large-scale developments under long-term concession arrangements, a framework that provides predictable demand and revenue streams for capital-intensive infrastructure. The company’s client base includes major property developers such as Aldar Properties, Modon, and Imkan, reflecting its established market position and credibility in delivering reliable cooling solutions to high-profile projects. The geographic concentration of PAL Cooling’s assets in strategic areas—exemplified by Al Reem Island—underpins the importance of these sites within Abu Dhabi’s urban growth strategy. Al Reem Island’s ongoing development as a mixed-use hub with significant residential, commercial, and institutional components aligns with the demand for dependable cooling infrastructure capable of supporting dense, climate-sensitive urban environments.
From a portfolio perspective, the inclusion of eight concessions and five district cooling plants creates a diversified asset base with exposure to multiple development zones and customer cohorts. This diversification helps balance risk across a portfolio that benefits from the scale and efficiency gains associated with consolidated operations. The connected load target of approximately 600,000 refrigeration tons provides a meaningful endpoint for capacity planning and asset management, signaling a substantial growth trajectory as current plants operate at full efficiency and planned expansions come online. As the UAE continues to pursue decarbonization and energy efficiency goals, the portfolio’s size and strategic locations position Tabreed and CVC DIF to optimize performance through centralized operations, best-practice maintenance, and potential modernization programs that could reduce energy intensity and improve service quality.
Al Reem Island’s placement within the ADGM free zone context adds another layer of strategic significance. The free zone designation often correlates with favorable regulatory environments, supportive business ecosystems, and robust infrastructure networks that can accelerate project delivery and collaboration with key developers and authorities. The combination of PAL Cooling’s established asset base and the enhanced governance and capital access that come with Tabreed and CVC DIF’s involvement is likely to strengthen the ability to execute expansion plans, upgrade aging equipment, and potentially introduce new cooling technologies aligned with sustainability targets and customer requirements.
Stakeholder Perspectives and Strategic Implications
Dr. Bakheet Al Katheeri, chairman of Tabreed, characterized the acquisition as a precise fit with the company’s strategic objectives and its readiness to adapt to Abu Dhabi’s ambitious real estate initiatives. He emphasized that the transaction positions Tabreed to meet the UAE’s rising demand for sustainable cooling, driven by ongoing population growth and decarbonization objectives. The framing suggests a disciplined approach to growth that prioritizes long-term value creation, efficient asset utilization, and the ability to respond to evolving urban development patterns. Expanding the cooling portfolio through this acquisition would likely strengthen Tabreed’s market position, enabling it to offer integrated cooling solutions across a broader set of developments and customer segments while leveraging economies of scale and operational efficiencies.
Gijs Voskuyl, managing partner of CVC DIF, described the deal as a high-quality investment with the potential to deliver long-term growth and returns. His comments highlight the view that PAL Cooling’s concession-based contracts operate within a fast-growing urban environment, which can provide stable cash flows and opportunities to optimize asset performance over extended horizons. The perspective from CVC DIF reflects a strategic emphasis on infrastructure assets with resilient demand drivers, especially in regions experiencing rapid urbanization and rising energy needs. The partnership with Tabreed complements CVC DIF’s investment philosophy, combining capital strength with operational expertise to maximize the value of long-lived physical assets.
Khalid Al Marzooqi, Tabreed’s chief executive officer, called the acquisition pivotal for Tabreed’s portfolio, noting that the additional plants will be operated and maintained by the world’s leading experts in sustainable cooling. This emphasis on expert management underscores the importance of operational excellence in delivering reliable, energy-efficient cooling services. By integrating PAL Cooling’s network with Tabreed’s know-how, the combined entity stands to benefit from advanced maintenance protocols, performance data analytics, and continuous improvement in energy efficiency metrics. The outcome could include enhanced plant reliability, reduced downtime, and improved customer satisfaction across the concession portfolio.
Özgür Önder, head of CVC Middle East, highlighted the partnership with Tabreed as evidence of CVC’s commitment to investing in sustainable, mission-critical infrastructure across the UAE. This stance aligns with broader regional strategies that prioritize resilient infrastructure investments capable of supporting long-term growth, sustainable development, and energy transition goals. The collaboration reflects a belief that well-managed, essential infrastructure assets can deliver meaningful returns while contributing to the region’s climate and economic objectives. The deal’s structure, involving a reputable district cooling operator and a strategic investment partner, is presented as a model of how investment firms can work with operators to accelerate the deployment and modernization of critical services.
Samia Bouazza, Multiply Group CEO, stated that the transaction supports the company’s strategy of portfolio optimization and liquidity enhancement. She explained that it demonstrates Multiply Group’s ability to realize significant value from its assets while boosting liquidity to fuel the company’s next growth phase. This perspective frames the deal as a strategic exit or monetization of a portion of the portfolio that aligns with a broader plan to redeploy capital toward higher-growth opportunities or to strengthen balance sheet resilience.
The ceremony at which the agreement was signed in Abu Dhabi brought together executives from Multiply, Tabreed, and CVC DIF, signaling a formal commitment to move forward with the transaction under the agreed terms. The ceremonial signing, in addition to reflecting the deal’s significance, underlines the collaborative nature of the arrangement and the alignment of the three parties around a shared objective: to create a larger, more capable platform for sustainable cooling in a rapidly developing market. The presence of senior leadership from all involved entities underscores the seriousness of the partnership and the strategic importance attributed to this investment for Abu Dhabi’s cooling infrastructure landscape.
Regulatory Pathways, Financial Implications, and Integration Considerations
The regulatory pathway for this deal will likely involve a comprehensive review by UAE authorities to ensure compliance with competition rules, sector-specific regulations, and national energy policy objectives. While the specifics of the approvals process are not detailed in the initial announcement, it is customary for large-scale infrastructure acquisitions with cross-sector implications to undergo multi-stakeholder scrutiny. The successful completion of regulatory approvals would mark a critical milestone, enabling the consolidation of PAL Cooling’s concessions and the expansion of Tabreed’s operational footprint within Abu Dhabi.
From a financial perspective, the deal’s reported value of approximately Dhs3.8 billion reflects a substantial investment in an established district cooling portfolio. The deal structure, featuring long-term concessions, provides a framework for predictable revenue streams and cash flows, supporting portfolio optimization and potential financing efficiency. For Multiply Group, the transaction is positioned as a means to realize value from existing assets and to improve liquidity metrics, potentially freeing capital for reinvestment in growth-oriented opportunities. For Tabreed and CVC DIF, the integration of PAL Cooling’s assets into a larger platform can drive economies of scale, optimize plant maintenance and operations, and support ongoing capital expenditures for modernization and capacity expansion.
Integration considerations will focus on aligning PAL Cooling’s concession agreements with Tabreed’s operational standards and strategic objectives. Key areas likely to be prioritized include asset optimizations, standardization of maintenance practices, data-driven performance management, and potential upgrades to enhance energy efficiency and reliability. The combined entity would benefit from shared services, centralized procurement, and the ability to deploy advanced cooling technologies across a broader asset base. The collaboration could also enable streamlined project development for future expansions, leveraging Tabreed’s project management capabilities and CVC DIF’s capital discipline to support sustainable growth.
Market Context and Industry Implications
This transaction signals a notable development within the UAE’s district cooling sector, illustrating how market players are leveraging partnerships between operators and investors to accelerate growth and strengthen resilience. As urban centers in the region continue to densify and demand for sustainable cooling intensifies, the consolidation of high-quality assets under well-capitalized platforms can drive efficiency gains, improve service levels, and support decarbonization efforts. The combination of Tabreed’s operating expertise, PAL Cooling’s established concession framework, and CVC DIF’s investment acumen embodies a model for scaling essential infrastructure through strategic collaboration. The emphasis on sustainable cooling aligns with broader national objectives to reduce energy intensity, lower greenhouse gas emissions, and promote climate-resilient urban development. In this context, the Abu Dhabi market remains a focal point for infrastructure investment, with developers, authorities, and utility providers collaborating to advance large-scale projects that require robust, reliable, and efficient cooling capacity.
The deal also reinforces the importance of strategic asset placement in high-value zones such as Al Reem Island, where proximity to major developments and free zone ecosystems can enhance project delivery and customer access. As the UAE continues to pursue growth in urban real estate and mixed-use communities, the need for sophisticated cooling solutions that can operate efficiently at scale becomes ever more critical. In this competitive landscape, the added scale and operational prowess that Tabreed, PAL Cooling, and CVC DIF bring together through this acquisition may set a benchmark for similar transactions in the region, encouraging other players to pursue strategic partnerships, asset relocations, or consolidation strategies that enable improved service quality, reliability, and sustainability outcomes.
In summary, the agreement to acquire PAL Cooling Holding from Multiply Group for roughly Dhs3.8 billion marks a major milestone for the UAE’s district cooling sector. By combining eight concessions and five plants with long-term concession-based contracts, the deal promises to enhance service delivery and capacity across Abu Dhabi’s rapidly evolving urban landscape. The collaboration among Tabreed, CVC DIF, and Multiply Group reflects a shared commitment to strategic growth, liquidity optimization, and sustainable infrastructure development, with the potential to deliver lasting value for customers, developers, and investors alike. The closing of regulatory approvals will be a decisive step in realizing this ambitious plan, after which the parties will move forward with integration efforts, capacity expansions, and continued investment in state-of-the-art cooling technologies that support Abu Dhabi’s ambitious decarbonization targets and energy efficiency goals.
Conclusion
The alliance between Tabreed and CVC DIF to acquire PAL Cooling Holding from Multiply Group represents a significant strategic milestone in Abu Dhabi’s district cooling landscape. The deal’s scale, spanning eight concessions and five plants with an expected connected load of about 600,000 refrigeration tons, underscores the importance of centralized, efficient cooling solutions in sustaining Abu Dhabi’s growth trajectory. PAL Cooling’s established presence on key developments, including Al Reem Island, aligns with the region’s emphasis on high-quality infrastructure to support premium real estate and urban projects. The combination of Tabreed’s operational leadership, PAL Cooling’s concession framework, and CVC DIF’s investment discipline is poised to deliver long-term value through enhanced asset performance, improved service reliability, and potential capacity expansion to meet increasing demand. Executives from Multiply, Tabreed, and CVC DIF emphasized the deal’s strategic fit, its growth potential, and the broader benefits for the UAE’s sustainable energy and urban development objectives. As regulatory approvals progress, the market will be watching closely to see how this collaboration translates into intensified project delivery, cost efficiencies, and a stronger platform for sustainable cooling across Abu Dhabi’s vibrant development landscape.