Tabreed and CVC Join Forces to Secure Abu Dhabi Cooling Giant

UAE’s National Central Cooling Co and CVC’s infrastructure arm, CVC DIF, have agreed to acquire Abu Dhabi-based PAL Cooling Holding from Multiply Group in a deal worth AED 3.8 billion, the firms announced. The transaction, currently awaiting regulatory clearance, encompasses eight long-term concessions and five operational district cooling plants across Abu Dhabi, with plans underway to extend capacity to around 600,000 refrigeration tons.

This acquisition marks a significant move in the region’s sustainable infrastructure landscape. Tabreed, established as a pioneer in district cooling, will significantly bolster its presence in the UAE. CVC DIF brings international financing strength and a portfolio focused on mission-critical, environmentally efficient urban infrastructure.

The scope of the deal includes three concessions in central Abu Dhabi and five on Al Reem Island. As of December 2024, these plants delivered a combined capacity of 182,000 RT, with one more plant under construction and three in planning. Once completed, the assets will support an approximate load of 600,000 RT.

PAL Cooling, since its inception in 2006, has aligned with major developers including Aldar Properties, Modon and Imkan, delivering centralised chilled water services to large residential, commercial, and mixed-use projects. Its strategic foothold in Al Reem Island—now integrated into the Abu Dhabi Global Market zone—positions it for further expansion amid Abu Dhabi’s continuing urban growth.

Tabreed’s chairman, Dr Bakheet Al Katheeri, emphasised that the deal supports the UAE’s twin goals of robust urban development and decarbonisation. He stated it enhances Tabreed’s capacity to fulfil the rising demand for sustainable cooling infrastructure. CVC DIF managing partner Gijs Voskuyl noted that PAL Cooling represents a “high-quality investment” poised to deliver steady returns, given its concession-based contracts in a fast-growing urban environment.

From Tabreed’s perspective, Khalid Al Marzooqi, its chief executive, described the transaction as pivotal, projecting that the new plants will be “operated and maintained by the world’s leading experts in sustainable cooling.” Multiply Group’s CEO, Samia Bouazza, highlighted that the sale aligns with its portfolio optimisation strategy, unlocking proceeds to reinvest in core verticals and global expansion ambitions.

Independent analysis from Fitch Ratings indicates Tabreed will finance half of the acquisition—roughly AED 1.2 billion—using a blend of debt and internally generated capital. The move is expected to fully utilise Tabreed’s existing balance sheet capacity.

Market observers view this partnership as a template for future infrastructure deals in the Gulf. Earlier, global investors such as KKR, I Squared Capital and TAQA had shown interest in PAL Cooling, underscoring intense competition in this emerging asset class.

District cooling is gaining traction as a more sustainable alternative to traditional air-conditioning, delivering chilled water via centralised plants rather than through energy-intensive individual units. It aligns with regional sustainability targets and is well-suited to the Gulf’s harsh summer climate, where temperatures frequently exceed 50 °C.

Financial advisers on the deal include Standard Chartered and Clifford Chance for Multiply Group, while Tabreed and CVC DIF received counsel from Citi, Synergy Consulting, and White & Case.

Upon completion, the acquisition will make Tabreed and CVC DIF the leading stakeholder in Abu Dhabi’s district cooling sector, reinforcing their joint focus on building sustainable city infrastructure.