Dubai-listed Tabreed’s total cooling capacity will increase significantly following the acquisition of Abu Dhabi’s PAL Cooling Holding.

A partnership between Tabreed and CVC DIF acquired 100 percent of PAL Cooling Holding from Multiply Group for 3.8 billion UAE dirhams ($1.03 billion).

Founded in 2006, PAL Cooling has three long-term concessions in the Abu Dhabi main island area and five long-term concessions on Al Reem Island.

The concessions are serviced by five existing, sustainable district cooling plants and associated networks in Abu Dhabi, with a connected capacity of 182,000 refrigeration tonnes (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.

PAL Cooling’s concession agreements and partnerships are with leading master developers, including Aldar Properties, Modon and Imkan.

The company is firmly positioned on Al Reem Island, which is now fully part of the ADGM free zone and is poised to benefit from the expected development ramp-up, with future network expansion already licensed by Abu Dhabi’s Department of Energy.

Tabreed CEO Khalid Al Marzooqi said the acquisition will strengthen its already investment-grade status with long-term concession agreements and assured future growth, evidenced by current and planned developments on Reem Island.

The acquisition, which is subject to regulatory approvals, is anticipated to close in the second half of 2025, Tabreed said in a statement.

(Editing by Anoop Menon) ([email protected])

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