CVC’s infrastructure business has partnered with district cooling firm Tabreed to acquire a AED3.8bn (€882.4m) UAE district cooling firm PAL Cooling from Abu Dhabi’s Multiply Group.
As part of the acquisition of PAL Cooling, CVC DIF and Tabreed will take over a portfolio of eight concessions across Abu Dhabi’s main island and Al Reem Island.
PAL Cooling, founded in 2006, is a provider in the UAE’s district cooling market, serving residential, commercial and mixed-use developments. The company has eight long-term concession agreements and partnerships with master developers, including Aldar Properties, Modon and Imkan.
Bakheet Al Katheeri, chairman of Tabreed, said: “Tabreed is always looking to the future and ensuring we remain agile. The acquisition of PAL Cooling with CVC DIF aligns perfectly with our strategic objectives and readiness to adapt to Abu Dhabi’s ambitious real estate projects.
“This year has been historic for Tabreed, with ventures like our Palm Jebel Ali JV and continued growth in Abu Dhabi. These steps position us to meet the UAE’s rising demand for sustainable cooling, driven by population growth and decarbonisation targets.”
Gijs Voskuyl, managing partner at CVC DIF, said: “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.”
Khalid Al Marzooqi, CEO of Tabreed, said: “This is turning out to be a truly pivotal year for Tabreed. As we enter a new phase of growth in Abu Dhabi alongside partners, CVC DIF, the benefits brought by this acquisition will be substantial. As part of Tabreed’s portfolio, these additional plants will be operated and maintained by the world’s leading experts in sustainable cooling.
“The acquisition also serves to strengthen our already investment-grade status with safe, long-term concession agreements and assured future growth, evidenced by current and planned developments on Reem Island.”
Özgür Önder, head of CVC Middle East, said: “Our partnership with Tabreed, a regional leader with deep industry expertise, 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: “The monetisation of PAL Cooling Holding is a deliberate step in our 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.”
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