Blackstone turns up heat on Emergent Cold storage assets
US private equity group Blackstone is close to selling about $350 million worth of assets occupied by cold storage operator Emergent Cold in one of the year’s largest industrial property plays.
The under-the-radar move could set a strong benchmark as KKR looks to the Arnotts’ property portfolio in an $800 million sale and leaseback deal.
The Emergent Cold deal is close to being wrapped up with an overseas party bumping out the local competition.
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While the move is yet to be finalised the buyer could form ties with the Texas-based operator that bills itself as the country’s top provider of cold-chain logistics services and supply chains.
The deal for five key facilities is being brokered by CBRE’s Chris O’Brien but the adviser and the parties declined to comment on the transaction.
The portfolio of temperature-controlled warehouses is likely to trade at a price that reflects a low 5 per cent capitalisation rate.
The Emergent Cold properties in play include two complexes on Lytton Rd in Hemmant, Queensland.
The two properties are on the strip near Brisbane’s Australia Trade Coast precinct as well as the Port of Brisbane and Port of Brisbane Motorway.
The holdings comprise a complex known as 1181 Lytton Road that spans 21,000sqm and another known as 1248 Lytton that tops 17,000sqm.
There are also two WA facilities in Solomon Road, Jandakot, and Kurnall Road in Welshpool.
The Solomon Road complex spans about 18,222sq m and comprises a purpose built, temperature controlled storage and distribution facility.
Situated in the core southern industrial zone of Jandakot near the Kwinana Freeway, the property offers expansion potential.
The Kurnall Road property spans about 9047sq m and is a purpose-built facility with a temperature-controlled storage and distribution facility.
The portfolio includes one SA asset in Bradford Way in Canvan. That 21,962sqm property is a cold store complex with three building areas, each with chiller and refrigerated storage capabilities.
Emergent Cold was set up by Neal Rider, former president of US giant Americold Logistics, and claims it is the top player in cold storage in Australia.
Since Emergent Cold was founded in 2017 with the vision to build a global cold chain solution for multinationals and it has expanded rapidly.
On the local scene, it last year bought Montague Cold Storage in a deal that added 80,000 pallets of storage capacity to its local business and gave it sites at Allansford, Truganina and Tullamarine.
Emergent Cold had in February 2018 also bought the business and assets of another local player, Swire Cold Storage, including 15 warehouses.
In May this year it proposed a takeover of another local operator, Oxford Cold Storage, subject to regulatory approval.
This article originally appeared on www.theaustralian.com.au/property.
