Industrial properties, especially warehouses, have become one of the most sought-after types of real estate due to the rise of e-commerce. It is even more so now amid the Covid-19 pandemic.
Of the many subsectors in the industrial sector, one asset class has been slowly growing and gaining attention — cold storage warehouses. But what are these and why are they becoming popular?
A cold storage warehouse is a type of warehouse that comes with temperature control, says JLL Property Services (M) Sdn Bhd country head YY Lau. “This feature allows the storage of items that need to be in a specific environment and temperature. Thus, it is typically used by such sectors as food and beverage (F&B), medical and pharmaceutical. Some items in the electrical and electronics (E&E) sector, such as semiconductors, also need this kind of environment.”
According to AREA Management Sdn Bhd executive chairman and Alpha REIT Managers Sdn Bhd chairman Datuk Stewart LaBrooy, different sectors require different levels of temperature. For instance, pharmaceuticals need an air-conditioned environment of 16°C to 24°C. Chilled meats, dairy products and vegetables require 0°C to -5°C while frozen foods are kept at -18°C to -28°C.