Tabreed has completed two infrastructure transactions that will increase its operational capacity and expand its concession portfolio in the UAE.
The company, alongside infrastructure investor CVC DIF, has acquired PAL Cooling Holding from Multiply Group following regulatory approvals.
Tabreed has also finalised a concession agreement with Dubai Holding Investments to provide district cooling services to Palm Jebel Ali.
Tabreed secures 25-year contracts with PAL Cooling acquisition, adds Palm Jebel Ali development
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 concessions on Abu Dhabi’s main island and Al Reem Island, which is now incorporated into the ADGM free zone.
The portfolio is served by five operational plants, with one under construction and three in planning stages.
The acquisition increases Tabreed’s pro forma connected capacity by 13 per cent to 1.55 million RT and introduces contracts averaging 25 years with offtakers including Aldar, Modon and Imkan.
“Closing this acquisition demonstrates Tabreed’s commitment to sustainable growth, disciplined investment and long-term value creation. 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,” Dr Bakheet Al Katheeri, Chairman of Tabreed said in a statement.
“This transaction strengthens our earnings profile and operational presence in Abu Dhabi. 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,” he added.
Tabreed has completed its 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 per cent, Dubai Holding Investments 49 per cent) and is expected to deliver 250,000 RT of cooling capacity.
Tabreed will operate and maintain assets under both agreements. The PAL Cooling acquisition is funded through equity contribution by both partners and project-level debt, while Palm Jebel Ali is being delivered through a joint venture consolidated by Tabreed.
PAL Cooling has demonstrated financial performance, with a 7.5 per cent revenue CAGR and approximately 60 per cent average EBITDA margin in the past three years. Approximately 60 per cent of revenues are derived from capacity charges under agreements, providing cash flows.
The transactions follow Tabreed’s distribution of its first interim dividend. The addition of two assets strengthens its ability to sustain and grow shareholder returns.
