Tabreed Buys PAL Cooling, Completes Palm Jebel Ali Deal

Tabreed, the world’s leading district cooling company, on Monday announced the completion of two transformational infrastructure transactions that significantly accelerate its growth trajectory and strengthen its long-term, concession-backed business model.

Tabreed, alongside global infrastructure investor CVC DIF, has completed the acquisition of PAL Cooling Holding from Multiply Group, following regulatory approvals.

Within the past four weeks, Tabreed also finalised a landmark concession agreement with Dubai Holding Investments to provide district cooling services to Palm Jebel Ali – one of the emirate’s most eagerly anticipated large-scale developments.

These milestones represent a major acceleration in Tabreed’s growth strategy, boosting operational capacity, diversifying its concession portfolio and enhancing long-term cash flow visibility, the company said in a regulatory disclosure with Dubai Financial Market (DFM) this morning.

PAL Cooling Acquisition

The PAL Cooling transaction, with an equity value of $1.05 billion, is expected to add approximately 600,000 refrigeration tons (RT) of connected capacity across eight exclusive concessions on Abu Dhabi’s main island and Al Reem Island, which is now fully incorporated into the ADGM free zone. The portfolio is currently served by five operational plants, with one more under construction and three in advanced planning stages.

The acquisition immediately increases Tabreed’s pro forma connected capacity by 13% to 1.55 million RT and introduces long-tenor contracts averaging 25 years with high-quality offtakers including Aldar, Modon and Imkan.

Tabreed Chairman Dr Bakheet Al Katheeri said that acquiring Pal Cooling demonstrated Tabreed’s commitment to sustainable growth, disciplined investment and long-term value creation.

He also said that these are strategic infrastructure assets with strong fundamentals and meaningful future upside, reflecting their ability to execute and scale in line with national development and decarbonisation priorities.

Tabreed CEO Khalid Al Marzooqi said that this transaction strengthened their earnings profile and operational presence in Abu Dhabi.

“We are adding long-term, stable contracts with blue-chip developers and enhancing our platform for growth, now and in the near future. Beyond the numbers, it demonstrates how Tabreed continues to build the essential, sustainable infrastructure that underpins the UAE’s next phase of development,” he added.

Tabreed has also completed its long-term district cooling concession with Dubai Holding Investments for Palm Jebel Ali. The $410 million project will be executed in phases via a joint venture (Tabreed 51%, Dubai Holding Investments 49%) and is expected to deliver 250,000 RT of cooling capacity.

Strengthening Value Creation

Tabreed will operate and maintain all assets under both agreements. The transaction structures ensure capital efficiency – PAL Cooling acquisition is funded through equity contribution by both partners and non-recourse, project-level debt, while Palm Jebel Ali is being delivered through a joint venture fully consolidated by Tabreed.

PAL Cooling has demonstrated strong financial performance, with a 7.5% revenue CAGR and around 60% average EBITDA margin in the past three years. Approximately 60% of revenues are derived from fixed capacity charges under long-term agreements, providing stable and predictable cash flows.

The addition of two scalable, concession-backed assets further strengthens its ability to sustain and grow shareholder returns in the long term.

Al Khateeri said that together, these transactions represent a defining moment for Tabreed.

“With deeper presence in Abu Dhabi and Dubai, greater earnings visibility and a diversified asset base, Tabreed is well-positioned to deliver long-term value to shareholders and national stakeholders alike,” he added.