Cold Storage Giant Looks To Go Public At $30B Valuation

freezer cold storage ice cream

One of the largest owners of cold storage real estate is reportedly preparing an initial public offering that could be one of next year's biggest stock market splashes.

Michigan-based Lineage Logistics, which owns 400 temperature-controlled facilities amounting to 2 billion cubic feet globally, could go public as early as the first half of 2024 and is eyeing a $30B valuation, Bloomberg reported, citing anonymous sources.

The REIT is working with Morgan Stanley and Goldman Sachs on the IPO, according to Bloomberg.

Lineage Logistics didn't respond to Bisnow's request for comment by the time of publication.

Lineage’s close competitor in the cold storage space, Americold Realty Trust, which operates over 240 storage facilities and 1.5 billion cubic feet, went public in 2018 and raised $725M.

Lineage Logistics operates in North America, Europe and Asia. This fall, the company added facilities in Harnes, France, Houston, Dallas and Windsor, Colorado. Last month, it acquired eight U.S. facilities from Maryland-based Burris Logistics, amounting to 1.3M SF.

The industrial and logistics real estate sector has seen strong fundamentals in recent years, with rising e-commerce demand helping it withstand economic and capital markets volatility. In the U.S., however, industrial vacancy is creeping up amid a historic number of new deliveries.

During the third quarter, 162.4M SF of industrial was delivered, an 18.6% quarter-over-quarter increase, according to JLL's Industrial Outlook. In turn, the vacancy rate rose by 70 basis points from the previous quarter to 4.9%. But the figure is still well below the 7.7% rate recorded in 2013.

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