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I Squared Capital has agreed to acquire a controlling stake in Philippine company Royale Cold Storage
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The investment is the first step in I Squared Capital’s strategy to build a leading institutional cold storage platform in the Philippines
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RCS operates five strategically located cold storage facilities that serve as key distribution hubs for Metro Manila and surrounding provinces
I Squared Capital, an independent global infrastructure investment manager, has agreed to acquire a controlling stake in Philippine company Royale Cold Storage (RCS).
The investment finalized last month is the first step in I Squared Capital’s strategy to build a leading institutional cold storage platform in the Philippines, the company said in a statement.
RCS operates five strategically located cold storage facilities that serve as key distribution hubs for Metro Manila and surrounding provinces, supporting a blue-chip client base across quick service restaurants, meat processors, agriculture, and food retail.
“RCS is not only a premier operator, but also a trusted cold storage partner to many of the Philippines’ leading food companies,” said Harsh Agrawal, Senior Partner at I Squared. “Its strong national presence, long-standing customer relationships, and scalable infrastructure make it an ideal platform to build a leading cold chain network across the country.”
RCS chief executive officer Joey Tongson said they “look forward to our partnership with I Squared Capital as we enter our next phase of growth.”
Tongson added: “Their global expertise in infrastructure and experience in cold storage will help us expand and enhance our capabilities and better serve the growing demand from the Philippines’ food and agriculture ecosystem.”
I Squared Capital said the cold storage sector in the Philippines benefits from strong macro tailwinds including population growth, rapid urbanization, and maturing consumer preferences. These trends are fueling an increasing need for food security through reliable cold chain infrastructure.
Taken together, these factors are expected to drive double digit annual growth in the sector over the next decade.
I Squared Capital said this investment marks the continued expansion its global cold storage strategy, building on its experience from CubeCold in Europe and WOW Logistics in the US. The closing of the agreement is subject to certain customary conditions, including anti-trust clearance in the Philippines.
Aside from RCS, I Squared Capital last year has also entered into an agreement to acquire Philippines Coastal Storage & Pipeline Corp., the largest independent petroleum products import storage facility in the Philippines, and its affiliate entities. In 2023, Berde Renewables, a distributed energy platform of I
Squared Capital, signed a power purchase agreement with Holcim Philippines for solar rooftop projects on two of its plants. The Office of the Special Assistant to the President for Investment and Economic Affairs recently said I Squared Capital is planning to make an additional investment of $1 billion in energy, transport and digital infrastructure projects in the Philippines.
