Americold Realty Trust (the “Company” or “Americold”) announced that the Company has acquired Newport-St. Paul Cold Storage (“Newport Cold”), a 6.1 million cubic foot temperature-controlled storage facility located in St. Paul, Minnesota, for $56 million. Separately, the Company has closed on its previously announced acquisition of Nova Cold Logistics, an owner and operator of three temperature-controlled storage facilities in Canada.
“We are excited to announce the acquisition of Newport Cold, which deepens our presence in the Minneapolis-St. Paul market. Additionally, the completion of our previously-announced Nova Cold acquisition, expands our position in Canada, which is a growing market with fragmented ownership of cold storage facilities,” stated Fred Boehler, President and Chief Executive Officer of Americold. “Both of these acquisitions provide attractive returns on a stabilized, leverage neutral basis, with additional opportunities to enhance returns over the next two to three years by implementing our best-in-class commercial business practices and the Americold Operating System.”
Newport Cold Storage is a 6.1 million cubic foot temperature-controlled facility, containing approximately 26,000 pallet positions located in St. Paul, Minnesota. Strategically located on Highway 494, the site offers three acres of adjoining land available for expansion. This transaction was completed at a year one NOI yield, reflective of Americold Operating System implementation costs, of approximately 7.5% and is being funded with cash on the balance sheet.
The previously announced Nova Cold portfolio consists of three locations totaling 23.5 million cubic feet with approximately 81,000 pallet positions, and additional acreage for future expansions. Located in the gateway cities of Toronto, Calgary, and Halifax, this acquisition expands Americold’s position in Canada, where the Company already has a presence through its third-party management business. Americold’s current customer base has significant overlap with Nova Cold’s.
