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  • 🧊 CubeCold expands its footprint in Italy and the UK

🧊 CubeCold expands its footprint in Italy and the UK

ALSO: Cold storage trends and predictions from Colliers

Author

Olga Kirby
November 02, 2023

Welcome back to Cube Cold News where we cover the latest developments in the cold chain industry and temperature-controlled logistics.

In today’s edition:

  • CubeCold’s latest acquisitions in Italy and the UK

  • Cold storage trends and predictions from Colliers

  • New Cold opens one of the largest and most advanced cold storage facilities in the world

  • Rapid growth predicted for cold chain tracking solutions 

Cube Cold

CubeCold Europe acquires FrigoCaserta CubeCold Europe has acquired FrigoCaserta, a prominent temperature-controlled warehousing company based in Southern Italy. FrigoCaserta specializes in serving a diverse clientele, including grocery retailers and food producers in sectors like dairy, fish, and bakery goods. It currently operates a total capacity of approximately 78,000 pallets, with 25,000 pallets in a newly built semi-automated temperature-controlled development. This acquisition solidifies CubeCold's presence in Italy after the successful acquisition of Fridocks earlier this year. (link)

CubeCold Europe expands its UK footprint CubeCold Europe has announced its expansion in the UK market with the acquisition of J R Harding & Sons, a leading multi-niche temperature-controlled warehouse and distribution company based in Frome. J R Harding & Sons operates a 17,000 pallet temperature-controlled warehouse, as well as transport services and truck maintenance services. This acquisition integrates seamlessly into Cube Cold’s current UK operations and enables CubeCold to provide more value-added services and further expand its offering to customers in the UK. (link)

News

Cold Storage Real Estate: Trends & Predictions from Colliers’ 2023 National Industrial Conference The cold storage market is experiencing significant growth, with an estimated annual increase of 13.2% through 2030, and is expected to reach a market value of $95 billion. The primary driver behind this surge is the evolving consumer preferences and the rise of services such as meal kit delivery and online grocery shopping, further accelerated by the COVID-19 pandemic. In their report, Colliers have identified the following challenges and industry trends:

  • Lack of supply and outdated existing stock - new construction and retrofitting of facilities are needed to meet the demand.

  • Constructing cold storage facilities is more expensive compared to regular structures. Tailored building designs are crucial to accommodate diverse needs.

  • Taller freezer facilities are becoming popular, offering energy efficiency and improved operational savings.

  • Conversion of cold storage buildings to other uses in the future is challenging, but speculative construction continues to meet the growing demand.

  • Cold storage facilities tend to cluster around ports, manufacturing hubs, and areas with high consumer density.

  • Automation in cold storage facilities is increasing, and consumer preferences influence building designs.

  • The financial landscape of cold storage real estate has changed, with the spread above ambient warehouse cap rates shrinking to almost zero. Underwriting the exit remains a challenge.

Despite the challenges, the growth prospects for cold storage real estate remain robust. (link)

NewCold expands automated cold storage warehouse in Indiana NewCold, a Dutch cold chain logistics company, has opened a state-of-the-art cold storage facility in Indiana. The highly automated warehouse is one of the largest and most advanced in the world. It utilizes power from various sources to operate independently from the grid, resulting in about 50% greater energy efficiency than traditional warehouses. Phase one of the facility has been operational for almost a year, with a capacity of 100,700 industrial pallet positions. Construction is underway for phase two, which will double the capacity to over 200,000 pallet positions by summer 2024. Despite challenges such as the COVID-19 pandemic and labor shortages, the project has progressed successfully. NewCold now operates a total of 15 automated and energy-efficient warehouses worldwide, with over 1.2 million pallet positions. (link)

FreezPak and BG Capital have formed BGFP International to develop three domestic cold-storage facilities FreezPak Logistics and BG Capital have secured a $75.9M construction loan to build a 282,000-square-foot cold-storage facility near Houston. The project is being developed by their joint venture, BGFP International. Bank OZK provided $50M in senior construction financing, while PGIM Real Estate provided $25.9M in mezzanine construction financing. This is the second of three projects for BGFP International, with the first facility in Philadelphia expected to deliver soon and a third facility in Jacksonville, Florida, set to break ground in the coming months. The new Houston facility will feature cooling equipment, hydrogen fuel cell technology, and heavy machinery. (link)

Provender Completes $50M Purchase of 3 Cold-Storage Facilities from Food Distributor Provender Partners has completed the acquisition of a 469,000-square-foot tri-temp real estate portfolio from a national food service company for almost $50M. The portfolio includes three buildings in Dallas, TX; St. Louis, MO; and Kissimmee, FL. The recently acquired 185,569-square-foot cold storage facility in Dallas marks the final piece of the portfolio. The seller will lease back the three buildings while constructing new larger facilities in these markets. The strategic locations of these buildings, along with their attractive storage spaces and amenities, make them appealing to various food service, grocery, and logistics companies. Provender remains focused on growing its food-related industrial building portfolio to meet the increasing demands of the food supply chain. (link)

Reports

Rapid growth on the horizon for the cold chain tracking solutions market The cold chain tracking solutions market is experiencing rapid growth, according to a market report from Berg Insight. Shipments of remote tracking systems for refrigerated cargo units reached 725,000 units in 2022 and are expected to reach 1.2 million units by 2027. The installed base of active tracking devices for refrigerated cargo units is projected to grow from 2.4 million units in 2022 to 4.4 million units by 2027. The market is served by various players such as ORBCOMM, Maersk, and Globe Tracker. The demand for real-time tracking solutions is increasing as organizations seek to optimize logistics processes and improve customer service. The addressable market for cold chain tracking solutions is expected to expand significantly in the coming years. (link)

Image by Berg Insight

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