Tabreed and CVC DIF move to acquire PAL Cooling Holding from Multiply Group in a deal valued at about Dhs3.8 billion, expanding a strategic footprint in Abu Dhabi’s district cooling market. The acquisition bundles eight long-term concessions serviced by five district cooling plants, positioning the combined group to serve a growing connected load of roughly 600,000 refrigeration tons once all ongoing and planned projects come online. The deal remains subject to standard regulatory approvals as the parties align on execution milestones. PAL Cooling, established in 2006, has emerged as a cornerstone player in the UAE’s district cooling sector, working with leading developers and benefiting from locations that support scalable growth. The agreement is a milestone for Tabreed, for CVC DIF, and for Multiply Group as they realign portfolios and capital structures to meet evolving market dynamics and sustainability objectives.
Deal overview and strategic context
The arrangement involves Tabreed, the UAE’s leading district cooling company, partnering with CVC’s infrastructure strategy arm, CVC DIF, to acquire Abu Dhabi’s PAL Cooling Holding from Multiply Group. The value of the transaction is reported at approximately Dhs3.8 billion. The portfolio being acquired encompasses eight long-term concessions that are serviced by five district cooling plants located in Abu Dhabi. When all ongoing and planned plants are completed, the deal’s assets are expected to deliver a connected cooling load of around 600,000 refrigeration tons. The transaction is contingent on regulatory approvals, underscoring the typical diligence and clearance required for major infrastructure acquisitions in the region.
PAL Cooling, founded in 2006, has established a prominent role in the UAE’s district cooling landscape. Its operations span collaborations with major developers, including Aldar Properties, Modon, and Imkan. A key concentration of PAL Cooling’s assets lies in strategic urban areas such as Al Reem Island, which is now integrated into the Abu Dhabi Global Market (ADGM) free zone ecosystem. This geographic concentration underscores the company’s alignment with rapid urban development and the demand for reliable, energy-efficient cooling solutions in high-growth districts.
The acquisition is framed as a strategic move that aligns with Abu Dhabi’s ambitious real estate and urban development programs. The parties view the deal as a way to strengthen capacity, improve service reliability, and support the UAE’s broader sustainability and decarbonisation targets by delivering efficient cooling to rapidly expanding urban environments. In the words of the principals involved, the transaction is designed to position Tabreed to meet rising demand for sustainable cooling that accompanies population growth and the country’s decarbonisation ambitions.
Key elements of the deal can be summarized as follows:
- Value: Approximately Dhs3.8 billion.
- Scope: Eight long-term concessions with five district cooling plants in Abu Dhabi.
- Projected load: About 600,000 refrigeration tons upon completion of ongoing and planned facilities.
- Status: Subject to regulatory approvals and customary closing conditions.
The formal agreement was signed in Abu Dhabi during a ceremony attended by executives from Multiply Group, Tabreed, and CVC DIF, signaling a formal commitment to pursue the transaction and to advance the integration process once approvals are in place.
PAL Cooling’s profile and strategic assets
PAL Cooling’s trajectory in the UAE’s district cooling sector reflects a consistent track record of serving major urban development projects with long-duration concession-based models. Since its inception in 2006, PAL Cooling has established relationships with prominent property developers, enabling it to secure a steady stream of long-term contracts that underpin its revenue base and asset utilization. The company’s portfolio has been shaped by its geographic concentration and the strategic locations of its assets, particularly within Abu Dhabi’s expanding urban corridors.
A central concentration of PAL Cooling’s assets has been in Al Reem Island, an area that has evolved into a focal point for mixed-use development and high-density urban growth. The significance of Al Reem Island is magnified by its status as part of the ADGM free zone, which underscores a broader strategic push to centralize business and living environments around well-connected, energy-efficient infrastructure services. This positioning in a high-growth, pioneering district aligns PAL Cooling with the needs of developers seeking reliable cooling capacity to support ambitious residential, commercial, and mixed-use projects.
PAL Cooling’s business model has relied on long-term concession agreements, which are typically structured to provide stable, predictable cash flows over extended horizons. Such contracts enable the company to plan capital investments, optimize plant operations, and maintain high service standards while aligning with the long-term development cycles that characterize major UAE projects. The combination of strategic asset locations, established developer partnerships, and a concession-based framework makes PAL Cooling a valuable asset in the UAE’s district cooling ecosystem.
The portfolio’s composition—spanning five district cooling plants and eight long-term concessions—illustrates a diversified operational footprint within Abu Dhabi. The plants are designed to deliver reliable cooling capacity to multiple customers across prominent developments, reinforcing the value of economies of scale and centralized cooling management. The concentration of assets in key urban zones is a hallmark of district cooling strategies in the region, enabling centralized energy-efficient solutions that reduce peak loads and lower overall carbon footprints in dense neighborhoods and business districts.
Strategic rationale for Tabreed and the CVC DIF partnership
The acquisition represents a strategic milestone for Tabreed, strengthening its core business by expanding plant capacity, concession exposure, and regional footprint. Tabreed’s leadership characterized the move as a pivotal addition to the company’s portfolio, underscoring the expectation that the new assets will be operated and maintained by world-class experts in sustainable cooling. This emphasis on expertise and best-in-class operations signals Tabreed’s intent to uphold high standards of reliability and efficiency, which are critical for ensuring customer satisfaction and long-term contract performance.
For Tabreed, the transaction broadens exposure to a growing market in Abu Dhabi, placing it in a stronger position to participate in ongoing and planned real estate developments that will require scalable, sustainable cooling solutions. The addition of PAL Cooling’s assets aligns with Tabreed’s strategic objective of expanding its services in high-demand markets where population growth, urbanization, and decarbonisation create sustained demand for cooling infrastructure.
The partnership with CVC DIF adds another layer of strategic capability. CVC DIF’s leadership views the acquisition as a high-quality investment with the potential to deliver long-term growth and returns. The fund emphasizes investments in mission-critical infrastructure within the UAE, reflecting a broader commitment to sustainable development and resilient, long-horizon returns. The combination of Tabreed’s operating expertise and CVC DIF’s capital and strategic guidance is positioned to unlock synergies across asset management, plant operations, and long-term concession performance.
The executives highlighted the nature of PAL Cooling’s business as being underpinned by long-term, concession-based contracts. This structure is often associated with stable revenue profiles, predictable maintenance and upgrade cycles, and a service model that aligns with the long development horizons of major urban areas. In a fast-growing urban environment, such contracts provide a framework for sustained investment in infrastructure upgrades, efficiency improvements, and capacity expansion that can be tuned to evolving demand.
The deal’s strategic significance extends to the broader UAE district cooling market, which is characterized by rapid urban growth, ambitious sustainability targets, and a shift toward centralized cooling solutions as a means of reducing energy consumption and emissions. The transaction supports the goal of delivering reliable, scalable, and energy-efficient cooling to meet the needs of new and existing communities while enabling sustainable urban development in Abu Dhabi and the wider emirate.
Statements from leadership and market implications
Dr. Bakheet Al Katheeri, chairman of Tabreed, spoke to the strategic fit of the acquisition, emphasizing the alignment with Tabreed’s objectives and readiness to adapt to Abu Dhabi’s ambitious real estate projects. He noted that the acquisition would position Tabreed to meet the UAE’s rising demand for sustainable cooling, driven by population growth and decarbonisation targets. The emphasis on sustainability and growth highlights Tabreed’s focus on delivering reliable cooling solutions that support environmental goals and urban development plans in the region.
Gijs Voskuyl, managing partner of CVC DIF, described the acquisition as a high-quality investment with the potential to deliver long-term growth and returns. He pointed out that PAL Cooling services its clients under long-term, concession-based contracts in a fast-growing urban environment, reinforcing the rationale for a patient, governance-oriented investment approach. The comment reflects CVC DIF’s belief in the stability and resilience of the concession-based model as a driver of value creation in infrastructure assets.
Khalid Al Marzooqi, Tabreed’s chief executive officer, framed the deal as pivotal for Tabreed’s portfolio. He stated that the additional plants would be operated and maintained by the world’s leading experts in sustainable cooling, indicating the emphasis on operational excellence and asset stewardship. This underscores Tabreed’s commitment to leveraging best-in-class management to maximize performance, efficiency, and reliability across expanded assets.
Özgür Önder, head of CVC Middle East, highlighted the partnership with Tabreed as a reflection of CVC’s commitment to investing in sustainable, mission-critical infrastructure across the UAE. The collaboration signals a strategic alignment between a leading regional operator (Tabreed) and a global investor with a focus on essential infrastructure, reinforcing long-term value creation through optimized asset management, technology adoption, and disciplined capital allocation.
Samia Bouazza, Multiply Group CEO, described the transaction as supportive of the company’s portfolio optimization and liquidity enhancement strategies. She stated that the deal reflects Multiply Group’s ability to realize significant value from its assets while boosting liquidity to fuel the company’s next growth phase. This perspective underscores the importance of capital discipline and asset-class realignment in a shifting market environment.
The signing of the agreement at a ceremony in Abu Dhabi, attended by executives from Multiply, Tabreed, and CVC DIF, marked a formal commitment to the transaction and a public display of the collaboration among the parties. The ceremony signified the seriousness and high level of coordination involved in aligning strategic objectives, capital deployment, and asset optimization within a competitive and regulated market.
Market context and regulatory backdrop in Abu Dhabi
Abu Dhabi’s district cooling sector has been expanding as part of the broader push toward sustainable urbanization and energy efficiency. District cooling offers a centralized, energy-efficient alternative to conventional on-site systems, reducing peak energy demand and enabling more sustainable building operations in densely populated and high-occupancy zones. The Abu Dhabi market has seen sustained investment in cooling infrastructure to support new residential developments, commercial corridors, and large-scale mixed-use projects. The region’s regulatory environment for infrastructure and energy projects emphasizes robust due diligence, grid reliability, and compatibility with long-term urban planning goals, which shapes the timeline and process for mergers and acquisitions in this sector.
The ADGM free zone designation for Al Reem Island adds another layer of strategic significance to PAL Cooling’s asset base. By aligning cooling infrastructure with a free zone ecosystem, developers and operators can benefit from streamlined regulatory processes, favorable business conditions, and improved access to financial and professional services that support large-scale infrastructure operations. The combination of a free zone environment and a robust urban development plan enhances the attractiveness of district cooling solutions in this area, increasing the likelihood of sustained demand for cooling capacity and reinforcing the long-term value proposition of PAL Cooling’s assets.
Regulatory approvals are a natural characteristic of large infrastructure transactions in the UAE, particularly those involving cross-institutional entities, international capital partners, and strategic asset acquisitions. The process typically involves antitrust and competition considerations, energy market compliance, and securities regulations, along with sector-specific oversight. The successful completion of this deal will depend on the timely receipt of all necessary approvals and the fulfillment of customary closing conditions, while ensuring alignment with Abu Dhabi’s broader energy and climate objectives.
From a market perspective, the transaction aligns with ongoing efforts to optimize capital allocation and portfolio management among regional leaders in district cooling. It reflects a broader trend toward strategic partnerships that combine operational expertise with global capital to scale essential infrastructure assets. The collaboration between Tabreed, CVC DIF, and Multiply Group demonstrates how asset-level value can be unlocked through shared capabilities, improved governance, and disciplined asset management, all while supporting the region’s sustainable development agenda.
Implications for sustainability, growth, and future opportunities
The acquisition of PAL Cooling Holding reinforces the UAE’s commitment to sustainable cooling as part of its climate and urban development strategy. By expanding district cooling capacity through a portfolio of high-quality assets, the deal supports the delivery of energy-efficient cooling services across Abu Dhabi’s rapidly changing urban landscape. This aligns with decarbonisation targets and the broader shift toward low-carbon infrastructure that minimizes energy intensity and optimizes resource use in densely populated areas.
The combined capabilities of Tabreed and CVC DIF bring together operational excellence and patient capital to maximize asset performance, drive efficiency improvements, and extend concession-term value. The long-term, concession-based contracts that PAL Cooling currently services create a stable platform for ongoing capital investment in plant upgrades, technology adoption, and network expansion. This can translate into improved plant reliability, reduced energy consumption, and lower carbon emissions per refrigeration ton, which are critical metrics for sustainability-focused investors, developers, and regulators.
For Multiply Group, the transaction is presented as a vehicle to optimize its asset portfolio and enhance liquidity. The strategic divestment is framed as a way to realize significant value from PAL Cooling’s assets while freeing capital to support Multiply Group’s next growth phase. This dynamic illustrates how portfolio optimization can enable strategic repositioning within an evolving market, where capital efficiency and liquidity are essential to pursuing new opportunities and maintaining financial flexibility.
The deal’s potential impact on Abu Dhabi’s real estate ecosystem is also noteworthy. By ensuring robust, reliable cooling services to key developments, the transaction supports the continued growth and operational efficiency of new residential and commercial projects. This, in turn, can attract further investment, support sustainable urbanization objectives, and reinforce Abu Dhabi’s reputation as a hub for energy-efficient infrastructure and innovative urban planning.
Looking ahead, the collaboration among Tabreed, CVC DIF, and Multiply Group may pave the way for additional strategic mergers and acquisitions within the UAE’s district cooling sector. As market participants seek to consolidate leadership positions, optimize asset utilization, and scale capacity to meet rising demand, the success of this deal could set a precedent for similar investments in the region. The emphasis on sustainable cooling, long-term concession models, and cross-border capital partnerships mirrors the broader trend toward resilient, climate-aligned infrastructure that supports economic growth and environmental stewardship.
Practical implications for operations and integration
As the parties move toward regulatory clearance and eventual closing, the integration of PAL Cooling’s assets into Tabreed’s operating framework will require careful alignment of plant operations, maintenance protocols, and concession management. Ensuring a seamless transition will be essential to preserving service quality, maintaining customer relationships, and sustaining the performance of the eight long-term concessions. The involvement of CVC DIF as a strategic investor provides access to governance expertise, financial discipline, and a broader resource base to support post-closing optimization efforts.
Operationally, the combined platform will benefit from shared services, technology platforms, and best-practice processes developed by Tabreed and its partners. This includes optimization of energy efficiency measures, plant reliability initiatives, and asset management strategies that maximize uptime and minimize operating costs. The result could be enhanced service levels for tenants and developers while enabling more proactive maintenance schedules and capital planning, helping to extend asset life and improve return on investment.
From a financial perspective, the deal promises to create a diversified, scale-driven revenue base across multiple concessions and plants. The long-term nature of the concession contracts provides visibility into cash flows, supporting disciplined capital allocation and ongoing investment in plant upgrades, network expansion, and efficiency improvements. This, in turn, reinforces the sustainability profile of the assets and strengthens the resilience of the operating platform in the face of changing market conditions.
The leadership teams involved have underscored a shared vision of operating excellence and strategic alignment. Tabreed’s management has emphasized the importance of maintaining the highest standards of sustainability, reliability, and efficiency in an expanded asset base. CVC DIF’s involvement signals a commitment to long-term value creation through patient capital and strategic governance. Multiply Group’s role in the transaction reflects a willingness to reposition assets to maximize value, while preserving the potential for liquidity enhancement to support future growth initiatives.
Conclusion
The agreement between Tabreed, CVC DIF, and Multiply Group to acquire PAL Cooling Holding from Multiply Group represents a significant strategic milestone in Abu Dhabi’s district cooling sector. By acquiring eight long-term concessions serviced by five district cooling plants and targeting a connected load of approximately 600,000 refrigeration tons, the deal underscores a commitment to scalable, sustainable cooling infrastructure in a rapidly developing urban landscape. The assets’ strategic positioning in Al Reem Island and other key Abu Dhabi locations situates the portfolio to participate in ongoing urban development and real estate projects, aligning with both market demand and sustainability objectives.
Executives from Tabreed, CVC DIF, and Multiply have articulated a compelling vision for the combined platform: a premier, technologically advanced cooling network operated by industry-leading professionals, supported by long-term, concession-based contracts in a fast-growing urban environment. The collaboration reflects a shared emphasis on sustainable infrastructure, resilient returns, and value creation through capital allocation and operational excellence. The transaction’s success will depend on regulatory approvals, effective integration, and disciplined execution that preserves service quality while unlocking the potential for long-term growth.
In the broader context, the deal signals continued investor interest in UAE infrastructure and sustainable urban services, reinforcing Abu Dhabi’s role as a key hub for district cooling innovation and financing. As the market evolves, the combination of reputable operators, global investment partners, and strategic asset portfolios is likely to shape a stable, growth-oriented trajectory for district cooling across the region. The collaboration’s outcomes will be watched closely by developers, regulators, and market participants seeking to balance economic growth with environmental stewardship and energy efficiency.