District Cooling Company Acquires Abu Dhabi Cooling Assets

Tabreed, a major player in the UAE's district cooling market, along with CVC DIF, has acquired PAL Cooling Holding from Multiply Group for an equity value of approximately Dh3.8 billion. This acquisition further consolidates Tabreed's already substantial presence in the district cooling sector, both within the UAE and internationally. The deal includes PAL Cooling's extensive portfolio of concessions in Abu Dhabi, encompassing long-term agreements on the main island and Al Reem Island.

PAL Cooling's assets include five operational district cooling plants with a connected capacity of 182,000 refrigeration tons (RT) as of December 2024. An additional plant is under construction, and three more are in the planning stages. These nine plants and eight concessions are projected to reach approximately 600,000 RT. PAL, established in 2006, has strong partnerships with prominent developers like Aldar Properties, Modon, and Imkan, particularly on Al Reem Island, a strategic location within the ADGM free zone.

This acquisition marks a significant step for Tabreed, aligning with the UAE's growing demand for sustainable cooling solutions, driven by population growth and decarbonization goals. Tabreed's Chairman, Dr. Bakheet Al Katheeri, emphasized the company's commitment to meeting these demands. Tabreed's existing projects include iconic landmarks like the Burj Khalifa, Sheikh Zayed Grand Mosque, and Louvre Abu Dhabi.