Monday, March 30, 2020

"Coronavirus: Panic buying sparks surge in flexible storage demand"

Somebody's always making a buck. Or in this case a pound.
From CityAM:
Coronavirus panic buying has caused a 50 per cent jump in food production that has put pressure on UK supply chains, according to the latest research.

Providers of flexible industrial space have reported an uptick in demand as supermarkets urgently attempt to cope with a surge in customer orders due to the pandemic.

Grocers have seen a jump in demand for essential food and household items, creating shortages that have forced them to put restrictions on products such as toilet roll, pasta and canned goods.

Consumer stockpiling has caused an urgent need for more flexible storage space to keep up with the surges in demand, according to research by property advisory firm Colliers International.

Chris Evans, supply chain specialist at Colliers International said: “Supply chains for groceries, toiletries and medical items are strained but it is not that the items do not get to stores, but they do not get there fast enough....
June 6, 2019 
"It's About To Become A Hot Market For Cold Storage Facilities"—CBRE
June 2, 2019
Logistics: Big Money For Warehouses, Looking at Cold Storage.
...This next bit brings back some memories. My second stock to double was a cold storage company, actually a dairy with a cold storage operation that was valued at about one-quarter of comparables. I started chipping away at the float and before I got anywhere near enough stock, the management, who knew full well the value of the operation, did an LBO and took it private at 2x market and ended up generating cash-on-cash returns (for themselves) of around 40% per annum for a decade or so.
The stock in that post, Americold (COLD) is still up 9.3% since June of '19, despite the recent unpleasantness while kicking out a 2.5% divi.
Sometimes boring is beautiful.