Key Takeaways
- Ahold Delhaize USA has announced a definitive agreement with Blackstone Credit & Insurance to invest $475 million in a triple net lease transaction for a highly automated grocery distribution center in Burlington, N.C.
- The facility is expected to add over one million square feet of distribution infrastructure and create over 500 jobs within ADUSA Distribution and ADUSA Transportation companies.
- The investment is structured to align the timing of costs with the long-term benefits of the facility, reducing refinancing risk and enabling Ahold Delhaize USA to deploy capital efficiently.
- Construction of the new facility is expected to begin in the first quarter of 2026, with an anticipated start of operations in 2029.
- The partnership between Ahold Delhaize USA and Blackstone Credit & Insurance reflects the focus on providing flexible, low-cost capital to leading investment-grade corporations.
Introduction to the Partnership
Ahold Delhaize USA, a leading grocery retail group, has announced a significant partnership with Blackstone Credit & Insurance, a global credit investor. The partnership involves a $475 million investment in a triple net lease transaction for the construction of a highly automated grocery distribution center in Burlington, N.C. This investment is a critical long-term investment in Ahold Delhaize USA’s U.S. supply chain and reflects Blackstone Credit & Insurance’s focus on partnering with leading investment-grade corporations globally.
The Distribution Center Project
The distribution center is expected to add over one million square feet of additional distribution infrastructure, delivering fresh and frozen grocery items to Food Lion stores. The facility is a key component of Ahold Delhaize USA’s growth strategy, and the partnership with Blackstone Credit & Insurance will enable the company to advance major infrastructure investments. The distribution center will be constructed on a site in Guilford County, North Carolina, and is expected to create over 500 jobs within ADUSA Distribution and ADUSA Transportation companies.
The Investment Structure
The investment is structured as a triple net lease agreement, where Blackstone Credit & Insurance will own the facility and fund 100% of in-scope construction costs. Ahold Delhaize USA will lease the facility for long-term use, with an option to purchase the site in the future under pre-agreed terms. This structure aligns the timing of costs with the long-term benefits of the facility, reducing refinancing risk and enabling Ahold Delhaize USA to deploy capital efficiently. The long-term lease approach supports a project of this scale and provides a stable source of funding for the construction and operation of the facility.
Benefits of the Partnership
The partnership between Ahold Delhaize USA and Blackstone Credit & Insurance brings several benefits to both parties. For Ahold Delhaize USA, the partnership provides access to flexible, low-cost capital, enabling the company to advance major infrastructure investments and support its growth strategy. For Blackstone Credit & Insurance, the partnership reflects the company’s focus on providing investment-grade credit to leading corporations and generating attractive risk-adjusted returns for institutional and individual investors.
Construction and Operations
Construction of the new facility is expected to begin in the first quarter of 2026, with an anticipated start of operations in 2029. The site is expected to employ over 500 associates within ADUSA Distribution and ADUSA Transportation companies over time. The distribution center will play a critical role in supporting Food Lion’s growth in the state, and the partnership between Ahold Delhaize USA and Blackstone Credit & Insurance will enable the company to deliver fresh and frozen grocery items to customers more efficiently.
About the Companies
Ahold Delhaize USA is a division of global food retailer Ahold Delhaize and is part of the U.S. family of brands, which includes five leading omnichannel grocery brands: Food Lion, The GIANT Company, Giant Food, Hannaford, and Stop & Shop. Blackstone Credit & Insurance is one of the world’s leading credit investors, with investments spanning the credit markets, including private investment grade, asset-based lending, public investment grade, and high yield. The company seeks to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses.
Conclusion
In conclusion, the partnership between Ahold Delhaize USA and Blackstone Credit & Insurance is a significant development in the grocery retail industry. The investment in the highly automated grocery distribution center in Burlington, N.C. reflects the focus on providing flexible, low-cost capital to leading investment-grade corporations and will enable Ahold Delhaize USA to advance major infrastructure investments and support its growth strategy. The partnership is expected to create over 500 jobs and deliver fresh and frozen grocery items to Food Lion stores more efficiently, ultimately benefiting customers and the local community.