(Bloomberg) -- Growtheum Capital Partners will invest 7 billion pesos ($121 million) in Philippine cold storage provider Mets Logistics Inc., backing an industry that the Southeast Asian nation sees as crucial in securing food supply.
The investment from Singapore-based GCP will help Mets Logistics grow its network of facilities in the Philippines, where it’s already a key player, according to a statement from the companies on Monday. As part of the deal, Mets Logistics’ founding shareholders will also invest an additional 500 million pesos in the company.
President Ferdinand Marcos Jr.’s administration has made food security a priority in one of Asia’s fastest-growing economies. Private investments in warehouses, cold chains and cold storage facilities are critical in ensuring food supply to stabilize prices, according to the country’s economic planning agency.
“This investment will further our expansion plans and help us enhance our cold chain logistics capabilities,” Mets Logistics Chairman and President Eduard Tio said.
Growtheum was established in 2021 when two senior GIC Pte executives who specialized in Southeast Asian private equity — Amit Kunal and Choo Koon Po — left the Singapore sovereign wealth fund to start their own investment company.
Mets Logistics, which operates facilities with around 100,000 pallet positions, also offers storage service for dry goods and blast freezing of fish, poultry and vegetables for longer shelf life, according to its website.
The Philippine cold chain sector’s capacity is projected to expand by 10% to 15% annually, under a multi-year road map that ends in 2025, with demand for food rising alongside incomes. The industry sees competitive pricing and the nation’s high cost of power as challenges.
The investment deal is subject to regulatory approvals. PwC Philippines acted as Mets Logistics’ financial, tax and legal adviser, the statement said.
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