Royale Cold Storage (RCS), a leading cold chain solutions provider based in Luzon, is planning a massive expansion in Visayas and Mindanao to the tune of more than $100 million from American private equity firm I Squared Capital.

I Squared Capital, a leading investor in the infrastructure sector, earlier acquired an 80 percent controlling stake in RCS as part of its $2-billion investment commitment across various sectors in the Philippines.

I Squared Capital Chairman and Managing Partner Sadek Wahba said 15 to 20 percent of $2-billion plan will be for RCS alone, equivalent to approximately $300 million to $400 million.

The Miami-based investment management firm has already invested over $130 million in RCS, covering its controlling share in the company and the expansion of its Plaridel, Bulacan facility.

RCS, which already has an existing five-hectare storage facility in the town, broke ground on Friday, Oct. 24 for a new 1.5-hectare facility.

The new expansion will have a capacity of 22,000 pallet positions. Currently, the company offers around 100,000 pallets across its five sites in Bulacan, Laguna, Rizal, and Pangasinan.

The expansion, according to RCS, aims at boosting its role in cutting the country’s post-harvest losses and improving food distribution efficiency while ensuring a more affordable access to perishable goods for Filipinos.

It will also help stimulate regional economic growth and generate local employment, the company said.

RCS Chief Executive Officer (CEO) Joey Tongson said the company is now looking at strengthening its foothold beyond Luzon and into a countrywide player.

“The major growth area we are looking at now, together with I Squared Capital, is Visayas and Mindanao,” Tongson said in an interview.

He said they are evaluating sites such as Davao and Cagayan de Oro, where there is a shortage in cold storage facilities.

Tongson added that I Squared Capital would inject over $100 million for this expansion, expected to be realized within three to five years.

Of its $2-billion commitment in the country, I Squared Capital will also invest in the sectors of energy, digital infrastructure, logistics, and food systems.

Wahba said the investment hinges on the company’s intent to capitalize on the Philippines’ growing economy and its young, highly-skilled population.

“The Philippines has enormous potential and has enormous opportunities for investments,” he said.

I Squared Capital currently manages $50 billion in infrastructure assets spread across 90 companies operating in 70 countries.