Tabreed, the leading district cooling company, today announced the successful 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 PAL Cooling transaction, with an equity value of AED3.87 billion, is expected to add approximately 600,000 refrigeration tonnes (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 percent to 1.55 million RT and introduces long-tenor contracts averaging 25 years with high-quality offtakers including Aldar, Modon and Imkan.

“Closing this acquisition demonstrates Tabreed’s commitment to sustainable growth, disciplined investment and long-term value creation,” said Dr Bakheet Al Katheeri, Chairman of Tabreed. “These are strategic infrastructure assets with strong fundamentals and meaningful future upside, reflecting our ability to execute and scale in line with national development and decarbonisation priorities.”

“This transaction strengthens our earnings profile and operational presence in Abu Dhabi,” added Khalid Al Marzooqi, CEO of Tabreed. “We’re 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.”

Separately, Tabreed has completed its long-term district cooling concession with Dubai Holding Investments for Palm Jebel Ali. The AED1.5 billion project will be executed in phases via a joint venture (Tabreed 51 percent, Dubai Holding Investments 49 percent) and is expected to deliver 250,000 RT of cooling capacity.

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 percent revenue CAGR and ~60 percent average EBITDA margin in the past three years. Approximately 60 percent of revenues are derived from fixed capacity charges under long-term agreements, providing stable and predictable cash flows.

These transactions align with Tabreed’s broader financial strategy. The company recently distributed its first-ever interim dividend, reflecting confidence in its strong balance sheet and long-term earnings outlook. The addition of two scalable, concession-backed assets further strengthens its ability to sustain and grow shareholder returns in the long term.