CVC-DIF and Tabreed to Acquire Abu Dhabi’s PAL Cooling for Over $1 Billion

A landmark infrastructure deal has been announced in the UAE as global investment firm CVC's infrastructure strategy (CVC-DIF) and district cooling giant Tabreed move to acquire Abu Dhabi-based PAL Cooling Holding from Multiply Group in a transaction valued at approximately $1.03 billion (AED 3.8 billion).

Deal Overview

The acquisition includes eight long-term district cooling concessions across key urban developments in Abu Dhabi. These assets consist of five operational plants currently delivering 182,000 refrigeration tons (RT), and four additional facilities either under construction or planned. Once completed, the network is expected to reach a total capacity of approximately 600,000 RT.

Established in 2006, PAL Cooling provides essential infrastructure for large-scale real estate projects, serving master developers such as Aldar, Modon, and Imkan across Abu Dhabi's main island and Al Reem Island.

Executive Commentary

Dr. Bakheet Al Katheeri, Chairman of Tabreed, remarked: “Tabreed consistently takes a forward-looking approach, ensuring our operations remain adaptive and resilient. The strategic acquisition of PAL Cooling, in partnership with CVC-DIF, directly supports our long-term vision to meet the UAE’s growing demand for sustainable cooling solutions, aligned with both population growth and national decarbonisation goals.”

Gijs Voskuyl, Managing Partner at CVC-DIF, commented: “PAL Cooling operates under long-term, concession-based contracts, providing stable and predictable returns. We believe it represents a high-caliber investment opportunity that will deliver strong performance for our investors, while contributing to long-term, sustainable value creation.”

Khalid Al Marzooqi, CEO of Tabreed, stated: “This year marks a significant turning point for Tabreed. The integration of PAL Cooling’s assets into our network will be managed by world-class professionals in sustainable cooling, reinforcing our investment-grade profile and bolstering future growth through reliable, long-term concession agreements.”

Özgür Önder, Head of CVC Middle East, added: “Our collaboration with Tabreed reflects CVC’s ongoing commitment to the UAE and the wider region. We are focused on supporting essential infrastructure assets that contribute to national sustainability objectives and long-term economic resilience.”

Samia Bouazza, CEO and Managing Director of Multiply Group, said: “The divestment of PAL Cooling Holding is a strategic move within our broader portfolio optimisation plan. It is designed to enhance value creation and deliver superior returns for our shareholders.”

Market Implications

Urban Infrastructure Growth: The acquisition strengthens Abu Dhabi’s long-term infrastructure resilience and supports expansion in high-density urban areas.

Sustainable Investment: With reliable, concession-based revenue streams and scalable assets, the deal represents a blueprint for sustainable infrastructure investment.

Public-Private Collaboration: The partnership highlights the role of joint ventures in achieving national utility and climate goals through effective private-sector participation.

This acquisition marks a strategic move in Abu Dhabi's utility landscape, reinforcing long-term investment in sustainable urban development. As the UAE continues to prioritize climate-friendly infrastructure and economic diversification, such partnerships are likely to become the cornerstone of next-generation infrastructure development in the region.