Tabreed teams up with Netherlands' CVC DIF to buy Abu Dhabi's PAL Cooling in $1bn deal
As part of the deal, the two companies will acquire PAL's existing portfolio that includes eight long-term concessions − three in Abu Dhabi's main island area and five in Al Reem Island −Tabreed said in a statement on Monday to the Dubai Financial Market, where its shares are traded.
The concessions are serviced by five existing district cooling plants and associated networks in Abu Dhabi, with connected capacity of 182,000 refrigeration tonnes, as of December 2024.
An additional plant is also under construction currently and three more are in the planning phase.
PAL has concession agreements with major developers, including Aldar Properties, Modon and Imkan to provide cooling services.
This deal is subject to customary regulatory approvals.
The acquisition is part of Tabreed's plans 'to adapt to Abu Dhabi's ambitious real estate projects', Bakheet Al Katheeri, chairman of Tabreed, said.
'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,' added Mr Al Katheeri.
In March, Tabreed and Dubai Holding Investments entered a concession agreement to set up a joint venture to provide district cooling services for Palm Jebel Ali in Dubai.
The construction of the district cooling network is set to commence in the second quarter of 2025, it said previously. The first cooling services at the project are expected to be delivered by 2027.
Tabreed also bought a majority stake in Emaar Properties' Downtown Dubai district cooling business for Dh2.48 billion in 2021.
It is providing district cooling services to developments such as the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers, Yas Island, and Dubai Metro, among others.
The company owns and operates 92 plants − 76 in the UAE, five in Saudi Arabia, eight in Oman, plus one each in Bahrain, India and Egypt − in addition to other international projects and operations.
CVC DIF is a global mid-market infrastructure equity fund manager with €19 billion ($22.3 billion) of infrastructure assets under management in energy transition, transport, utilities and digitalisation.
It is part of CVC, a global private markets manager with €202 billion of assets under management.
PAL Cooling Holding, which was founded in 2006, was acquired by Multiply Group in July 2021. Since then, it has been integrated under Multiply's energy and utilities vertical.
The sale process of PAL 'attracted strong interest from numerous strategic and financial investors given the UAE's rapid real estate development and rising demand for district cooling infrastructure', Multiply said in a separate statement.
The deal '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', Samia Bouazza, group chief executive and managing director of Multiply Group, said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
43 minutes ago
- Arabian Business
Al Reem Island property prices surge 38% in Q2 2025, cementing lead as Abu Dhabi's top investment hotspot
Al Reem Island has reinforced its position as Abu Dhabi's premier residential investment destination, recording a 38 per cent year-on-year rise in off-plan property weighted average prices in Q2 2025, according to analysis by international developer MERED using Quanta transaction data. Other leading areas also posted strong growth, with Khalifa City up 24 per cent and Jubail Island up 20 per cent, underscoring the capital's buoyant real estate market. Al Reem Island's popularity extends to rentals, where apartment rents climbed 21 per cent year-on-year in Q2 2025, supported by a mix of high-quality infrastructure, waterfront living, Grade-A offices, diverse retail, advanced healthcare, and the 1,000,000sq ft Reem Central Park. Abu Dhabi real estate Strategically positioned between Abu Dhabi's mainland business district and Saadiyat Island's cultural attractions, the island offers a fully integrated 'live-work-play' lifestyle. Building on this momentum, MERED is developing a design-led waterfront project across two prime plots totalling more than 23,400sq m within the Abu Dhabi Global Market (ADGM). The scheme, crafted by Pritzker Prize-winning architects, aims to set a new benchmark for super-prime living in the UAE capital. Artemiy Marinin, Project Director at MERED, said: 'Al Reem Island has unequivocally established itself as Abu Dhabi's premier residential destination. Average prices in waterfront projects have exceeded AED 1,800 ($490)per square foot, with new projects launched at even higher prices. 'We're proud to contribute to this dynamic market with our forthcoming project, offering direct sea views and architectural distinction crafted by Pritzker Prize-winning visionaries.' The island's growth has been boosted by ADGM's April 2023 jurisdiction expansion to Reem Island, which has attracted more than 1,100 new businesses and lifted total registrations past 11,000. The influx of high-earning professionals has reinforced its status as the residential hub of choice for ADGM. With sustained price growth, rising rents, and a steady pipeline of landmark developments, Al Reem Island is poised to remain Abu Dhabi's go-to address for luxury living and long-term investment.
The National
an hour ago
- The National
Dubai's economy grew 4% in first quarter on diversification boost
Dubai's economy grew by 4 per cent annually in the first quarter of 2025, backed by expansion across several key sectors. The emirate's gross domestic product rose to Dh119.7 billion ($32.6 billion) in the three months that ended in March, Dubai Media Office said on Thursday. The growth was driven by 'strong performances' in key sectors, with human health and social work posting the highest year-on-year growth rate at 26 per cent to hit Dh1.9 billion, it said. In terms of value, the wholesale and retail trade sector was the biggest at Dh27.5 billion, up 4.5 per cent year-on-year and contributing nearly a quarter to Dubai's economy in the first three months. Activity in real estate, one of Dubai's most important sectors, rose 7.8 per cent to about Dh9 billion. The volume and value of real estate transactions in Dubai rose sharply in the first half of the year amid the entry of more than 59,000 new investors into the booming market, Dubai Media Office said last month, quoting Dubai Land Department data. The number of transactions reached 125,538, up nearly 26 per cent from 99,947 during the first six months of last year. The value of these transactions rose about 25 per cent to about Dh431 billion, 'highlighting the strong growth momentum in the market', the report said. In the first quarter, financial and insurance, another key industry in Dubai, grew 5.9 per cent to Dh16 billion. Manufacturing grew 3.3 per cent to Dh8.7 billion. Accommodation and food services posted a 3.4 per cent increase to reach Dh4.9 billion, the report found. Dubai received 9.88 million international visitors in the first six months of 2025, Crown Prince Sheikh Hamdan bin Mohammed said this month. Dubai's Department of Economy and Tourism said the latest figure represents a 6 per cent year-on-year increase. The data highlights Dubai's continuing growth as a global tourism hub, after the city welcomed a record 18.72 million international visitors last year. Meanwhile, transport and storage added 2 per cent to Dubai's GDP in the second quarter, at Dh15.7 billion. Information and telecoms rose 3.2 per cent to Dh5.3 billion. Overall, the trade, real estate, financial services, transport and industry sectors collectively contributed about 78 per cent of Dubai's total growth, the media office said. 'At a time when businesses, investors and entrepreneurs are seeking stability and certainty, Dubai's sustained and diversified economic growth continues to underscore its global appeal,' said Hadi Badri, chief executive of Dubai Economic Development Corporation. The emirate remains focused on boosting domestic and international partnerships through strategic initiatives to unlock "new opportunities, enabling innovation, and turning ideas and plans into scaleable, commercial successes", he added. Dubai's economy has been expanding on the back of several government initiatives aimed at encouraging entrepreneurship and attracting international investments The emirate is currently working towards its Dubai Economic Agenda, or D33, which aims to double the size of its economy to Dh32 trillion over the next decade and establish the emirate among the top three global cities. The wider UAE has also undergone robust growth in its economy, which expanded by 4 per cent in 2024 to hit Dh1.776 trillion, driven by its non-oil sector as the country continues to diversify, official data showed in June. The World Bank in June upgraded its economic growth forecast for the UAE to 4.6 per cent this year, up from its 4 per cent projection in January. Emirates NBD, Dubai's biggest bank by assets, expects the emirate's economy accelerate to 3.7 per cent this year on the back of substantial project spending from both the private and public sectors. foreign direct investments. The Emirates, which received Dh167 billion in FDI last year, aims to increase that figure to Dh1.3 trillion by 2031.
Zawya
2 hours ago
- Zawya
DP World revenue up 20.4% in H1 2025
DP World today announced strong financial and operational results for the first half of 2025, underlining the resilience of its integrated global trade platform amid ongoing geopolitical and economic uncertainty. Revenue grew by 20.4% year-on-year to $11,244 million, driven by strong performance across Ports & Terminals and recent acquisitions. Adjusted EBITDA rose 21.4% to $3,033 million, while container volumes increased 5.6% on a like-for-like basis, reaching 45.4 million TEU (twenty-foot equivalent units) across the global portfolio. Commenting on the results, DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, said, 'We are pleased to report strong first-half results, with both revenue and EBITDA growing by over 20%. Ongoing geopolitical tensions, the continued closure of the Red Sea route, and rising uncertainty around global trade tariffs have caused significant disruption across the industry. Despite these challenges, our strategy of delivering integrated end-to-end solutions and operating critical infrastructure in key markets has allowed us to continue supporting cargo owners to move their freight and to deliver a strong set of results.' DP World continues to invest in strategic growth markets, with $1.08 billion in capital expenditure during the first half of the year. The full-year capex target of $2.5 billion will support expansion in Jebel Ali Port, Drydocks World, Tuna Tekra (India), London Gateway (UK), and Dakar (Senegal), along with DP World Logistics and P&O Maritime Logistics. These investments are focused on enhancing terminal capacity, supply chain integration, and digital capabilities to support long-term trade resilience. Across terminals where DP World has operational control, the company handled 27.4 million TEU, an increase of 7.5% year-on-year. Through Unifeeder, DP World offers efficient and sustainable multimodal transport solutions that ensure connectivity for global shipping lines and cargo owners. This has been particularly important amid recent disruptions to global supply chains, where our extensive network has played a crucial role in helping customers maintain cargo flows and delivery reliability. DP World's freight forwarding platform now spans approximately 300 locations and covers more than 90% of global trade lanes.
