Cold storage firm Magnavale has secured a £500m loan to pursue growth, following the completion of its new 101,000-pallet cold store near Grantham.
Invested over the next 10 years by equal partners Legal & General (L&G) and an unnamed US institutional investor, the debt facility will help Magnavale expand its network and undertake further facility improvements.
Andrew Lawrence, director of Magnavale and its Luxembourg-based parent company, Sadel, said he was proud to have won the investment.
“Their backing is a strong endorsement of both our strategy and the critical role that cold chain infrastructure plays in securing the future of the UK’s food supply chain,” he said, adding that the investment reinforces Sadel’s approach of building “best-in-class” operations and prioritising efficiency by targeted long-term investment.
“This partnership enables us to accelerate our expansion, enhance resilience across our national network, and deliver energy-efficient, future-ready facilities that meet the evolving needs of our customers and the wider economy,” he said.
The firm’s Grantham facility – which it claims to be the largest of its kind in the UK – opened in late March, with integrated food production and processing facilities in what Sadel called a “food hub” model. Sadel has teased plans for further hubs across the UK and Europe.
Magnavale’s frozen capacity has now reached 350,000 pallets.
The investment is L&G’s first in the cold storage logistics sector. The lender group was advised by Clifford Chance and CBRE. Macfarlanes advised Magnavale.
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