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US Investor Joins Saudi Bid for Cooling Assets
23 Jul
Summary
- I Squared Capital partners with Saudi Tabreed for cooling assets.
- Riyadh's King Abdullah Financial District seeks over $500 million.
- Deal signals ongoing consolidation in regional district cooling.
U.S. infrastructure investor I Squared Capital has joined Saudi Tabreed in a bid for the district cooling assets of Riyadh's King Abdullah Financial District (KAFD). Saudi Tabreed currently manages KAFD's cooling infrastructure, which supplies chilled water to various buildings within the district.
This potential acquisition is part of a larger trend where Gulf sovereign wealth funds are recycling capital from mature infrastructure to fund new priorities, often partnering with private investors. Reuters previously reported in March that KAFD was aiming to sell these assets for more than $500 million, with initial non-binding offers submitted earlier that month.
The KAFD board is currently evaluating the latest bids. I Squared Capital recently announced plans to invest up to $2 billion in Saudi Arabia's digital infrastructure and district cooling assets. Saudi Tabreed is partly owned by Abu Dhabi's National Central Cooling Company and Saudi Arabia's Public Investment Fund (PIF).
