US firm cues $130-M investment in PH cold storage
American private equity firm I Squared Capital is investing approximately $130 million to expand local cold storage operator Royal Cold Storage’s (RCS) five facilities in the Philippines.
About 30 percent of the investment will be earmarked for expanding the existing facility of RCS in Plaridel town in Bulacan, according to RCS CEO Ferdinand Tongson.
“The first phase of the expansion is more than $30 million in cost and then we hope to build it further. Over the next year, we look to spend more than $100 million in overall expansion,” I Squared Capital senior partner Harsh Agrawal said in a press briefing on Friday.
The multimillion-dollar investment for the planned expansion also covers four other RCS facilities in Marilao, Bulacan; Taytay, Rizal; Cabuyao, Laguna and Villasis, Pangasinan.
I Squared Capital and RCS broke ground on the expansion project in Plaridel on Friday, situated on a 1.5-hectare land. It is slated for completion by the end of 2026.
The expansion entails doubling the pallet positions to 200,000 from the current 100,000 in the coming years.
It is located beside RCS’s existing 5-hectare site in the Bulacan town, and is strategically positioned to serve Central Luzon and Metro Manila as well as generate more than 300 jobs.
“Once completed, it will help reduce post-harvest losses, improve food distribution efficiency, and ensure safer, more affordable access to perishable goods for Filipino families,” I Squared Capital said in a statement on Friday.
The $130-million investment forms part of I Squared Capital’s $2-billion investment in the Philippines across various sectors: energy, digital, logistics and food systems.
Beyond Luzon, Tongson said the company is exploring the Visayas and Mindanao, particularly in Cagayan de Oro and Davao, as major growth areas due to the lack of cold storage facilities in these areas.
