Americold Realty Trust has announced that it has acquired a 3.2m cu ft cold storage facility in Tampa, FL for $25.0m, and closed on a previously announced acquisition of AM-C Warehouses in the Dallas-Fort Worth, TX market totalling 13.8m cu ft, for $82.5m. The acquisitions were funded with cash on hand.
The 3.2m cu ft cold storage facility located in Tampa has 12,400 pallet positions and blast freezing capabilities. The total investment is expected to be $25.5m, comprising a $25.0m purchase price and $0.5m of initial capital expenditures. Under prior ownership, the site had been operating near breakeven. Over time Americold expects to achieve stabilised yields of 9% to 10% by the end of 2023 through a combination of enhancements to commercialisation and customer mix, and cost savings resulting from the Americold Operating System. The location also complements two of Americold’s existing Florida facilities, Plant City and Bartow, by providing additional capacity closer to the major Tampa market, allowing Americold to offer greater scale and logistical efficiencies.
The AM-C Warehouse acquisition in the Dallas-Fort Worth market consists of an 8.6m cu ft owned facility in Mansfield with approximately 27,000 pallet positions, and a 5.2m cu ft leased facility in Grand Prairie with approximately 18,000 pallet positions. The total investment is expected to be $85m, comprising an $82.5m purchase price and $2.5m of initial capital expenditures. The company expects to stabilise yields at 8% to 10% by year-end 2023, in line with its previously communicated target range for acquisitions.
Also, in August, Americold signed an agreement to extend the settlement date on its outstanding September 2018 equity forward contract to March 2022, from September 2020. This forward sale agreement is comprised of 6m shares, which, at the quarter ended June 30, 2020, would generate net proceeds of $134m.
Source: Americold
