Tabreed Strengthens Cooling Services in Abu Dhabi with Major Acquisition
Assalamu Alaikum! The UAE's National Central Cooling Company, known as Tabreed, along with the Netherlands-based fund CVC DIF, have successfully completed the purchase of Abu Dhabi’s PAL Cooling from Multiply Group after receiving regulatory approval. This move aims to boost Tabreed’s long-term, concession-backed business model.
The deal, valued at Dh3.87 billion ($1.1 billion), is set to add around 600,000 refrigeration tonnes (RT) of capacity across eight concessions on Abu Dhabi’s main island and Reem Island.
Currently, five district cooling plants serve this portfolio, with another under construction and three more in advanced planning, according to a statement from Tabreed. PAL Cooling holds eight long-term concessions and partnerships with real estate developers primarily on Reem Island.
This acquisition increases Tabreed’s connected capacity by 13% to 1.55 million RT and brings long-term contracts averaging 25 years with reputable developers like Aldar, Modon, and Imkan.
Multiply Group highlighted that this transaction allows them to focus their capital on new and existing sectors, marking a planned and natural liquidity event.
Additionally, Tabreed recently secured a long-term concession with Dubai Holding Investments to provide district cooling services to Palm Jebel Ali.
Concession agreements enable companies to operate services on government or third-party properties under specific terms, helping Tabreed expand its operational capacity and ensure steady long-term cash flow.
Tabreed’s chairman, Bakheet Al Katheeri, described these assets as strategic infrastructure with strong fundamentals and promising future growth.
Tabreed operates 94 plants across the region, including the UAE, Saudi Arabia, Oman, Bahrain, India, and Egypt. Notable developments served include Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, and Dubai Metro.
This acquisition and Tabreed’s ongoing projects reflect the company’s commitment to providing efficient and sustainable cooling solutions, contributing positively to the community and environment, InshaAllah.
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