New EQT Venture Invests $1.3B in Cold Storage Assets
EQT is teaming up with Americold Realty Trust on a new cold storage joint venture that focuses on cold storage warehouses in North America.
Most notably, Americold will provide at least 12 cold storage facilities through the JV across a value that exceeds $1.3 billion in the U.S. at the beginning of the venture. This portfolio takes up a total of 124 million cubic feet of temperature-controlled capacity and consists of more than 400,000 pallet positions.
The venture will focus on operating and owning assets. Adding cold storage development to the portfolio is also a possibility, according to the two partners.
Under the deal, 70 percent of the JV's interest will be owned by EQT, with Americold holding just 30 percent, but the latter will serve as the daily manager of the new platform. Morgan Securities LLC and Morgan Stanley provided financial advisement to EQT, with Eastdil Secured LLC serving the same role for Americold.
EQT brings experience in temperature-controlled logistics and has been one of the largest providers of cold storage assets in Europe. In addition to serving as the day-to-day manager, Americold will look for development opportunities.
"This joint venture is an important strategic step for Americold, significantly strengthening our balance sheet, while aligning us with a strong partner in EQT who recognizes the intrinsic value of our mission-critical assets and the inherent growth opportunities in our business," Rob Chambers, CEO of Americold, said in a statement.
"We believe this transaction reflects an attractive valuation for our assets, while positioning Americold to unlock additional value in the future as we look to grow this platform. This transaction is part of our multi-pronged strategy to drive disciplined long-term growth and superior returns for shareholders."
Both EQT and Americold expect that the JV will be sustained long-term. The two also anticipate that the deal will close in the third quarter, which is subject to regulatory approvals and closing conditions.
The move for EQT comes after it announced last fall to Bloomberg TV that it would investmore than $250 billion over five years in the U.S. One major move was the Swedish-based firm's purchase of a 25-warehouse portfolio in March for $575 million.
Source: GlobeSt/ALM