Global Investment Giants Compete for Abu Dhabi’s Cooling Assets

A high-stakes bidding war is unfolding for PAL Cooling Holding , the district cooling subsidiary of Abu Dhabi’s Multiply Group, with global asset managers vying for a deal estimated at approximately $1 billion. Among the contenders are KKR, I Squared Capital, Investcorp, and CVC Capital Partners, the latter collaborating with Engie-backed National Central Cooling Company, known as Tabreed. Abu Dhabi’s energy firm TAQA is also reportedly evaluating a bid.

PCH, established in 2006, operates six state-of-the-art district cooling plants across Abu Dhabi, boasting a designed capacity of nearly 193,800 refrigeration tonnes . The company maintains long-term agreements with prominent developers such as Aldar Properties, Al Qudra, Al Tamouh Investment, and Reem Developers. Its services provide 24/7 chilled water for air conditioning to landmark residential, commercial, and mixed-use developments, contributing to the UAE’s strategy to reduce carbon emissions.

The sale of PCH aligns with Multiply Group’s broader strategy to capitalize on the construction boom in the UAE. The investment firm, controlled by International Holding Company and chaired by Sheikh Tahnoon bin Zayed Al Nahyan, is working with Standard Chartered Plc on the transaction. Sheikh Tahnoon, a key figure in the UAE’s ruling elite, oversees a sprawling business empire, including two sovereign wealth funds.

The district cooling sector in the Gulf region is experiencing significant growth, driven by the need for energy-efficient and environmentally friendly alternatives to traditional air conditioning. District cooling systems, which deliver chilled water via insulated pipes to cool buildings, are particularly suited to the region’s climate, where summer temperatures can exceed 50 degrees Celsius. These systems are approximately 50% more energy-efficient than conventional cooling methods, making them an attractive investment for firms focusing on sustainable infrastructure.

Tabreed, a major player in the district cooling industry, has been expanding its portfolio through strategic partnerships. The company, with significant shareholders including Mubadala and Engie , recently entered a joint venture with Dubai Holding Investments to provide district cooling services for Palm Jebel Ali in Dubai. This AED 1.5 billion project aims to deliver approximately 250,000 RTs of cooling capacity, with construction expected to commence in the second quarter of 2025 and the first cooling services anticipated by 2027.