Tabreed Finalizes Strategic Acquisitions in the UAE’s District Cooling Sector
OIL AND GAS NEWS
In a significant development within the infrastructure landscape of the United Arab Emirates, Tabreed, a leading district cooling company, has successfully executed two major transactions aimed at bolstering its operational capabilities and fostering sustainable growth. These transactions, executed in conjunction with CVC DIF and regulatory authorities, mark a pivotal moment in Tabreed’s strategy to expand its influence and efficiency in the ever-evolving market of district cooling.
The first of these transactions involves the acquisition of PAL Cooling Holding from Multiply Group in a deal valued at AED 3.87 billion (approximately USD 1 billion). This acquisition is expected to add an impressive 600,000 refrigeration tonnes (RT) of capacity spread across eight concessions in Abu Dhabi, which will enhance Tabreed’s overall cooling capacity by 13 percent, bringing the total to an impressive 1.55 million RT. Notably, this acquisition includes long-term contracts averaging 25 years with acclaimed clients, solidifying Tabreed’s position in the capital’s cooling infrastructure.
“The completion of this acquisition underscores Tabreed’s unwavering commitment to sustainable growth, disciplined investment, and the creation of long-term value,” stated Dr. Bakheet Al Katheeri, Chairman of Tabreed. “These strategic infrastructure assets possess robust fundamentals and promising future prospects. This reflects our capacity to execute and scale operations in alignment with national development and decarbonization initiatives,” he added.
Khalid Al Marzooqi, CEO of Tabreed, emphasized the strategic implications of this acquisition: “This transaction not only enhances our earnings profile but also reinforces our operational footprint in Abu Dhabi. The addition of long-term, stable contracts with premier developers significantly boosts our growth trajectory, both now and in the foreseeable future. Furthermore, it highlights how Tabreed continues to construct essential, sustainable infrastructure that supports the UAE’s future development phases.”
The second transaction entails a concession agreement with Dubai Holding Investments for the provision of district cooling services in Palm Jebel Ali, one of Dubai’s ambitious developments. Valued at AED 1.5 billion, this project will be executed in phases through a joint venture, with an anticipated cooling capacity of 250,000 RT. Al Marzooqi articulated the significance of this partnership, stating, “Palm Jebel Ali is a transformative development, and we are proud to play a pivotal role in shaping its sustainable infrastructure. This collaboration underscores our dedication to creating future-ready urban environments driven by premier district cooling solutions. Moreover, it fortifies our position in Dubai’s booming developments, establishing a dynamic platform for forthcoming projects and reaffirming our status as a global leader in sustainable cooling.”
As part of the strategic management plan for both agreements, Tabreed will oversee all assets, ensuring capital efficiency through adept funding strategies and project-level debt management. This approach not only maximizes operational efficiency but also aligns with Tabreed’s long-term vision of sustainable growth and innovation in the district cooling sector.
“These transactions collectively represent a defining moment for Tabreed,” concluded Dr. Al Katheeri. “With an enhanced presence in both Abu Dhabi and Dubai, increased earnings visibility, and a diversified asset portfolio, Tabreed is exceptionally well-positioned to deliver enduring value to its shareholders, as well as to the broader national stakeholders.”
As the UAE continues to invest heavily in infrastructural enhancements and sustainable energy solutions, Tabreed’s strategic acquisitions illustrate a proactive approach towards adapting to market demands, establishing resilience in operations, and contributing to the UAE’s vision for a sustainable future.
In summary, these pivotal moves not only cement Tabreed’s leadership in the district cooling sector but also align with broader national objectives toward energy efficiency and sustainable urban development.
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