Abu dhabi: Tabreed, a leading district cooling company, has announced the successful completion of two significant infrastructure transactions that are set to accelerate its growth and fortify its concession-backed business model. The transactions include the acquisition of PAL Cooling Holding alongside global infrastructure investor CVC DIF and a landmark concession agreement with Dubai Holding Investments.
According to Emirates News Agency, the acquisition of PAL Cooling Holding from Multiply Group has been finalized after receiving regulatory approvals. This acquisition, valued at AED3.87 billion, is expected to add approximately 600,000 refrigeration tonnes (RT) of capacity across eight exclusive concessions in Abu Dhabi and Al Reem Island, now part of the ADGM free zone. This move increases Tabreed's pro forma connected capacity by 13 percent to 1.55 million RT and introduces long-lasting contracts with high-quality clients such as Aldar, Modon, and Imkan.
The PAL Cooling portfolio is supported by five operational plants, with further developments underway. Dr. Bakheet Al Katheeri, Chairman of Tabreed, emphasized the acquisition's role in promoting sustainable growth and value creation. Khalid Al Marzooqi, CEO of Tabreed, highlighted the strategic significance of the acquisition in strengthening the company's operational presence and growth platform in Abu Dhabi.
In parallel, Tabreed has finalized a district cooling concession with Dubai Holding Investments for the Palm Jebel Ali development. This AED1.5 billion project, executed through a joint venture with a 51 percent stake held by Tabreed, is expected to deliver 250,000 RT of cooling capacity. Tabreed will manage and maintain all assets under both agreements, ensuring capital efficiency through structured funding.
PAL Cooling has shown robust financial performance, with a 7.5 percent revenue CAGR and a ~60 percent average EBITDA margin in the past three years, providing stable cash flows. These transactions align with Tabreed's financial strategy, supported by its recent interim dividend distribution and strong balance sheet, positioning the company for sustained shareholder returns.