In a billion-dollar blaze of financial frost, CVC Capital Partners and Abu Dhabi-based Tabreed have struck a landmark deal to acquire PAL Cooling from Multiply Group for 3.8 billion UAE dirhams (roughly $1 billion), both companies announced Monday. The acquisition reflects a high-stakes bet on the Middle East’s surging real estate expansion and an urgent push for sustainable, energy-efficient infrastructure.
The deal brings together CVC DIF — the infrastructure investment arm of private equity titan CVC — and Tabreed (National Central Cooling Co. PJSC), a heavyweight in regional cooling systems, for a strategic acquisition that marks another step in redefining how urban centers chill under the Gulf sun.
“PAL Cooling is a high-quality asset that promises strong returns and sustainable value creation,” said Gijs Voskuyl, managing partner at CVC DIF.
PAL Cooling: The Icy Core of UAE Real Estate
Founded in 2006, PAL Cooling Holding has become a pivotal player in the UAE’s district cooling ecosystem, operating five major plants and supplying sustainable, centralized chilled water systems to multiple commercial and residential buildings. It maintains ties with some of the country’s most prominent real estate developers.
The technology it deploys is crucial in cutting carbon emissions and energy costs, especially in a region where traditional air conditioning is energy-intensive and environmentally taxing.
Multiply Group, which acquired PAL Cooling in 2021, said the divestment drew significant investor interest — a testament to the UAE’s meteoric urban growth and corresponding demand for green cooling solutions.
“This sale reflects strategic investor confidence in cooling infrastructure amid Abu Dhabi’s real estate boom,” Multiply Group noted.
