Tabreed and CVC DIF Buy Multriply Group’s PAL Cooling

CVC DIF, the infrastructure strategy of leading global private markets manager, CVC, and Tabreed, National Central Cooling Company, on Monday said that they have entered a partnership to acquire PAL Cooling Holding from Abu Dhabi’s Multiply Group for approximately $1.03 billion.

The transaction includes three long-term concessions in the Abu Dhabi main island area and five long-term concessions on Al Reem Island, and remains subject to customary regulatory approvals, Tabreed said in a bourse filing with Dubai Financial Market (DFM) this morning.

The concessions are serviced by five existing, sustainable district cooling plants and associated networks in Abu Dhabi, with connected capacity of 182,000 refrigeration tons (RT) as of December 2024.

An additional plant is currently under construction and three more are in the planning phase. Together the nine plants and eight concessions are expected to represent approximately 600,000 RT, it said.

PAL was founded in 2006 and is a prominent player in the UAE district cooling market, catering to landmark residential, commercial and mixed-use developments. It has eight, long-term concession agreements and partnerships with leading master developers, including Aldar Properties, Modon and Imkan.

PAL is positioned on Al Reem Island, which is a strategic destination now fully part of the ADGM free zone, the vibrant financial centre of Abu Dhabi, and is poised to benefit from the expected development ramp-up, with future network expansion already licenced by Abu Dhabi’s Department of Energy.

Historic Year

Emphasising the significance of the partnership, Tabreed Chairman Dr Bakheet Al Katheeri, said that the acquisition of PAL Cooling with CVC DIF aligns perfectly with their strategic objectives and readiness to adapt to Abu Dhabi’s ambitious real estate projects.

This year has been historic for Tabreed, with ventures like Palm Jebel Ali JV and continued growth in Abu Dhabi. These steps positions Tabreed to meet the UAE’s rising demand for sustainable cooling, driven by population growth and decarbonisation targets, he said.

Gijs Voskuyl, Managing Partner at CVC DIF, said that PAL Cooling services its clients under long-term, concession-based contracts, in a fast-growing urban environment. The company has a strong track record of developing and constructing high-quality and electrified district cooling plants to deliver reliable, energy-efficient cooling solutions.

“Building on CVC DIF’s long-term track record in the sector, we are delighted to partner with Tabreed, a leading district cooling company in the Middle East. Together with our partners, we are convinced that PAL Cooling is a high-quality investment that will provide our investors with solid returns, while offering the potential for long-term growth and sustainable value creation,” Voskuyl added.

CVC Middle East Head Ozgür Onder said that their partnership with Tabreed aligns perfectly with CVC’s commitment to investing in the UAE, backing mission-critical businesses that support sustainable development across the country.
Samia Bouazza, Group CEO and Managing Director of Multiply Group, said that the monetisation of PAL Cooling Holding is a deliberate step in their portfolio optimisation strategy, aimed at delivering superior returns to our shareholders.

“It reflects our ability to realise significant value from our assets while enhancing liquidity to fuel Multiply Group’s next phase of growth – both across our core verticals and on the global stage,” Samia added.