Congebec has signed a long-term lease at a development that will become the company’s first major cold storage facility located in Mascouche on Montreal’s North Shore.
The project will be developed through a joint venture between Rosefellow, a real estate developer, and Skyline Commercial REIT.
This $70 million development will include a new 219,000-square-foot cold storage facility that will serve local food producers.
Construction of the building, which will begin this spring, is expected to be completed in 2023. The facility will be equipped with a CO2 based refrigeration system that is more eco-responsible and safer than conventional ammonia-based systems.
The lease commitment represents Congebec’s first major new facility to open in Quebec in more than ten years, and brings the company network of cold storage facilities to thirteen properties that extend across Quebec, Ontario, Manitoba, Saskatchewan, and Alberta.
“This project represents a bit of a homecoming for us. As a key link between food production and consumption, we want to continue to support this industry in which our company got its start,” said Nicholas-P. Pedneault, Congebec’s president and CEO.
“The pandemic and the supply issues of the past few months have enabled us to refocus on our customers’ needs right here at home. This new space will contribute to the growth of the region’s food chain and to the food autonomy of Quebec as a whole.”
More than $2 billion worth of food products pass through Congebec’s 57 million cubic feet of cold storage facilities each year. The Mascouche facility alone is expected to generate approximately $500 million in annual economic activity.
The new building, which will be owned by Skyline Commercial REIT and Rosefellow, will be built in the Mascouche Industrial Park, at the corner of rue Louis-Blériot and Avenue de la Gare.
“Skyline Commercial REIT’s relationship with Congebec began in 2018 with the acquisition of eight cold storage facilities located across Canada. We are excited to grow this relationship and to increase the REIT’s investment in the cold storage sector, which continues to enjoy solid growth globally. This project aligns with our property development strategy which aims to deliver a pipeline of modern, well-located logistics and warehousing assets in key markets,” said Michael Mackenzie, president of Skyline Commercial REIT.
Skyline Commercial REIT is privately owned and managed, and focuses on acquiring industrial and logistics-centred investments along major highway corridors and transportation routes in Canada.