Real Estate

Multiply Group (ADX: MULTIPLY), the Abu Dhabi-based investment holding company, has signed an agreement to divest its entire stake in PAL Cooling Holding to a consortium formed by the National Central Cooling Company (Tabreed) and CVC DIF, in a deal valued at approximately AED 3.8 billion. The sale is subject to regulatory approvals.

This strategic transaction is part of Multiply Group’s portfolio optimization initiative and is expected to significantly enhance the company’s liquidity position. The proceeds from the sale will be redirected towards high-growth sectors and global expansion opportunities across Multiply Group’s core verticals.

Samia Bouazza, Group CEO and Managing Director of Multiply Group, described the divestment as a “deliberate step in our portfolio optimization strategy,” noting it is aligned with the company’s goal of delivering long-term value to shareholders and maintaining a disciplined investment approach.

Established in 2006, PAL Cooling Holding is a major provider in the UAE’s district cooling industry. The company operates five active plants and maintains eight long-term concession agreements with leading real estate developers, servicing high-profile residential, commercial, and mixed-use projects, including prominent developments on Abu Dhabi’s Reem Island.

Multiply Group acquired a 100% stake in PAL Cooling in July 2021. Since its integration under Multiply’s Energy & Utilities vertical, PAL Cooling has delivered steady recurring income and strategic alignment within the Group's broader portfolio.

The sale attracted interest from several strategic and financial investors amid the UAE’s ongoing real estate expansion and growing demand for sustainable cooling infrastructure.

The consortium partners also expressed strong confidence in the acquisition. Gijs Voskuyl, Managing Partner at CVC DIF, highlighted the strength of PAL Cooling’s long-term contracts and its strong development record, stating the acquisition provides “solid returns and long-term growth potential.”

Khalid Al Marzooqi, CEO of Tabreed, added that the acquisition marks a pivotal moment for Tabreed, reinforcing its position in Abu Dhabi and expanding its sustainable cooling footprint. “These additional plants will be operated by the world’s leading experts in sustainable cooling,” he said, emphasizing the long-term security and value this acquisition adds to Tabreed’s portfolio.

The transaction follows Multiply Group’s robust Q1 2025 performance, where the company reported AED 572 million in EBITDA (excluding fair value changes), a 19% year-on-year increase, and AED 585 million in revenue, up 50% year-on-year. The Group’s asset base stood at AED 43 billion.

Advisors to the deal included Standard Chartered and Clifford Chance for Multiply Group, and Citi, Synergy Consulting, and White & Case for Tabreed and CVC DIF.

Going forward, Multiply Group plans to intensify its focus on its key verticals—Energy, Mobility, Media & Communications, Wellness & Beauty, and Retail & Apparel—as well as opportunistic investments via its Multiply+ platform. The divestment of PAL Cooling further affirms the Group’s agile capital deployment strategy and commitment to long-term value creation.

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