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National Central Cooling Company, commonly known as Tabreed, is making headlines as it explores a significant bid for Multiply Group’s district cooling business, potentially valued at over $1 billion, according to sources familiar with the situation. The move reflects Tabreed’s ambition to expand its footprint in the district cooling sector, which is increasingly vital in the region’s hot climate.
Based in Dubai, Tabreed is collaborating with Citi to strategize this potential acquisition of Multiply’s PAL Cooling Holding (PCH). However, both Tabreed and Citi refrained from commenting publicly on the ongoing negotiations, and Multiply has not responded to inquiries regarding the matter. This level of secrecy is not uncommon in such high-stakes financial dealings.
Multiply Group, the company at the heart of this potential deal, is an investment holding entity based in Abu Dhabi. It is under the control of International Holding Company (IHC), which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan. Sheikh Tahnoon’s influence extends far beyond Multiply, as he is also the UAE’s national security adviser and a pivotal figure in a vast business empire that spans various sectors.
District cooling systems present a sustainable alternative to conventional air conditioning, delivering chilled water through insulated piping networks to cool both commercial and residential spaces. Particularly in the United Arab Emirates, where summer temperatures can exceed 50 degrees Celsius, district cooling has become a popular and efficient solution. These systems not only lower energy consumption but also contribute to reducing the urban heat island effect, making cities more sustainable.
PAL Cooling Holding, founded in 2006, has established a strong presence in the district cooling landscape with several plants in Abu Dhabi. Its facilities boast a combined design capacity of 242,000 refrigeration tonnes (RT), showcasing its capability to support the region’s growing cooling demands. The company benefits from long-term agreements with prominent developers such as Aldar and Reem Developers, who are capitalizing on a booming construction market across the UAE.
The prospective bid from Tabreed follows a notable move last year when it secured the concession to provide district cooling services to Dubai’s ambitious Palm Jebel Ali project. This large-scale development, a palm-shaped island expected to be double the size of the now-iconic Palm Jumeirah, aims to attract over 80 luxury hotels and resorts and accommodate around 35,000 families. Given its strategic significance, this venture reflects Tabreed’s commitment to enhancing its operational footprint in the Gulf region.
Reports from Bloomberg indicate that there have been ongoing discussions around the potential sale of Multiply’s cooling division, with the company previously partnering with Standard Chartered to assist in the process. This alignment with major financial institutions underscores the seriousness of the bid and the strategic planning involved.
As the story unfolds, the implications of this acquisition could reshape the landscape of district cooling services in the UAE and beyond, highlighting the increasing importance of sustainable cooling solutions in modern urban planning.
