Americold Completes $1.1 Billion Joint Venture by Contributing 12 Warehouses
Americold Realty Trust (COLD) has entered a joint venture with EQT's Active Core Infrastructure fund, contributing 12 U.S.-based temperature-controlled warehouses valued at over $1.3 billion in gross asset value. In exchange for its stake and management role, Americold received approximately $1.1 billion in net cash proceeds, which it plans to use to repay outstanding consolidated debt. The transaction is expected to reduce annual interest expenses by about $46 million and lower leverage by roughly 0.75 turn. The joint venture structure includes a mortgage financing draw of $845.5 million at closing, with EQT acquiring 70% ownership while Americold retains the remaining 30%. The company also has potential exposure under an income-support agreement if performance thresholds are not met over a 10-year period. While proponents argue that improved financial flexibility and reduced refinancing pressure justify the deal, critics highlight concerns about surrendering significant equity cash flow from established facilities. The transaction's long-term impact remains uncertain due to undisclosed details on future management fees, distributions, or development economics beyond 2026.
Tickers: $COLD
Topics: deleveraging joint venture real estate warehouse logistics