Tabreed, a district cooling company in the UAE, has completed two key infrastructure transactions that enhance its growth and strengthen its business model.
Alongside CVC DIF,
Tabreed acquired PAL Cooling Holding from Multiply Group, following regulatory
approvals.
Additionally, it
finalised a concession agreement with Dubai Holding Investments to provide
district cooling services to Palm Jebel Ali, a significant development in
Dubai.
PAL Cooling
Acquisition: The AED 3.87 billion ($1
billion) transaction adds around 600,000 refrigeration tonnes (RT) of capacity
across eight concessions in Abu Dhabi, increasing Tabreed’s total capacity by
13 per cent to 1.55 million RT. This acquisition also brings long-term
contracts averaging 25 years with reputable clients.
“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.”
Palm Jebel Ali: The
AED 1.5 billion concession with Dubai Holding Investments will be executed in
phases through a joint venture, delivering 250,000 RT of cooling capacity.
“Palm Jebel Ali is a transformative
development, and we’re proud to play a central role in shaping its sustainable
infrastructure,” said Al Marzooqi. “This partnership reflects our commitment to
future-ready urban environments powered by world-class district cooling. It
also strengthens our presence in Dubai’s high-growth developments, creating a dynamic
platform for future projects and reinforcing our position as the world’s leader
in sustainable cooling.”
Tabreed will manage
all assets under both agreements, ensuring capital efficiency through strategic
funding and project-level debt.
“Together, these transactions represent a
defining moment for Tabreed,” concluded Al Katheeri. “With deeper presence in
Abu Dhabi and Dubai, greater earnings visibility and a diversified asset base,
Tabreed is well-positioned to deliver long-term value to shareholders and
national stakeholders alike.” -OGN/ TradeArabia News Service
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