Global real estate fund manager BGO has recapitalised a 1.5m sqft cold-storage real estate portfolio in the US owned by developer Saxum Real Estate.
The six-unit, class-A cold-storage portfolio has been recapitalised over three separate transactions.
The assets are located in major distribution hubs, with significant unfulfilled cold storage demand, including Phoenix, Atlanta and Reno, Hazleton and Dallas-Fort Worth. A seventh facility in Atlanta is expected to ce completed soon, bringing the total portfolio to nearly 1.7m sqft.
The portfolio is anchored by cold-storage operator Arcadia Cold Storage & Logistics, which has leased approximately 81% of the portfolio.
Sean Gilbert, principal of Saxum Real Estate, said: “In this volatile economic climate, cold storage continues to demonstrate its recession-proof qualities as an asset class. This portfolio features thoughtfully designed, state-of-the-art cold storage assets that will have a profound impact on the food and beverage supply chain in the US going forward.”
He added: “BGO’s expertise in the sector combined with their dedicated cold-chain investing platform was materially beneficial and aided in our selection of them as a partner, especially. Their team was exceptional and we are proud to partner with them.”
Kevin Rivest, managing partner at BGO, said: “BGO’s cold chain logistics sector focus and expertise was well matched with this unique opportunity to recapitalise Saxum’s newly-constructed portfolio of cold-storage projects.
“We are excited to close this transaction and grow our relationship with Saxum and Arcadia. They have been leaders in cold-storage development and operations and are true experts in the space. The scale and collective cold-chain experience of this group and BGO’s depth of financing relationships combined to drive this unique opportunity to closing.”
Permanent debt financing for the Atlanta, Dallas-Fort Worth and Hazleton assets was provided by PGIM Real Estate.
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