Lineage Logistics announced the acquisition of Teglverksveien 47-49 (“Teglverksveien”), a port- centric property in Norway which features a newly-built modern cold storage and freezer building. Commercial real estate adviser, CBRE represented the buyer and served as the transaction broker. Terms of the deal were not disclosed. Lineage is controlled and operated by Bay Grove Capital (“Bay Grove”), a San Francisco-based owner-operator dedicated to partnering with strong management teams to build exceptional businesses.
The Teglverksveien property, located outside Oslo, Norway’s capital and largest city, totals over 14,000 square meters of capacity. The facility represents Lineage’s first investment in Norway and serves the central Eastern Norway cold-storage market. Similar to other properties that Lineage owns as a REIT, this facility is leased to a third-party operator.
“As the first US-based cold-storage logistics organization to enter Norway, we’re thrilled to grow our footprint in Scandinavia and make this first investment in Norway. We hope to continue to grow in greater Scandinavia and offer cold-storage services to our customers in this critical geography,” said Mike McClendon, Lineage’s President of International Operations & EVP of Network Optimization. “Our strategic expansion in Europe centers around providing our customers with best-in-class solutions in locations that make the greatest impact.”
The Teglverksveien property is located in the Drammen municipality, which lies 40 kilometres (25 mi) from Oslo and is in close proximity to the Drammen Port that offers both a rail terminus and a seaport, making it a strategic real estate investment.
“This acquisition highlights the continued expansion of our net-leased real estate portfolio with well- located cold-storage properties and our growth as a global industrial REIT focused on temperature controlled warehouses,” said Adam Forste, Co-Executive Chairman of Lineage and Co-Founder and Managing Partner at Bay Grove, which led the acquisition. “Properties like Teglverksveien represent high- quality real estate which are well-positioned for future supply-chain growth. The Norwegian CBRE team played a vital role in introducing the opportunity and facilitating the process resulting in a successful transaction.”
The acquisition contributes to the strategic expansion of Lineage’s facility network across Europe. Following the close of this transaction, the combined Company will feature a global footprint that spans over 1.9 billion cubic feet of temperature-controlled capacity across over 320 facilities in 14 countries spanning North America, Europe, Asia, Australia, New Zealand, and South America.
“We are thrilled to have completed a successful transaction with Lineage. Both parties were able to consummate a seamless, efficient transaction, even in the challenging circumstances presented by COVID-19,” says Axel Folkvard Partner at Oslo Finans, a Norwegian syndicator who acquires and manages Real Estate on behalf of HNW (High Net Worth) individuals.
This acquisition follows the Company’s announced entry into the Nordic region through the acquisition of Kanalholmen 15 (“Kanalholmen”), a large, net-leased cold storage facility located in the industrial area of Avedøre Holme in Hvidovre.