Investors seeking alternative, higher-yielding asset classes are eyeing cold storage assets
Insight
Cold chain, unlocked: The cold storage opportunity in Asia Pacific
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Cold storage may still be a specialised segment within the logistics sector, but owners, developers, and investors have been attracted by its strong demand drivers and appealing fundamentals, including stable cash flows, longer lease terms, and the opportunity for portfolio diversification.
With the real estate needs for such facilities rapidly evolving, the increasingly complex requirements are raising the barriers to entry into the niche sector, though it’s done little to slow its rapid growth.
Fuelled by strong investor interest, the cold storage sector globally is on track to grow 4.5% annually to exceed 1.1 billion cubic metres by 2030, JLL data shows.
What are the macro and industry demand drivers making cold storage a hot investment pick? How would this translate into opportunities for owners, developers, and investors of cold storage facilities?
Our latest report offers more insights into the opportunities in the cold storage sector.