Ahold Delhaize USA Enters Lease-Back Deal To Advance DC

Ahold Delhaize USA recently broke ground on a new state-of-the-art DC in Burlington, NC to strengthen its East Coast supply chain network. Above is an aerial rendering. 

Sometimes food companies can get resourceful and creative in leveraging relationships and commitments to accomplish expansion goals. Such is the case with leading grocery retail group Ahold Delhaize USA. The company recently announced a definitive agreement under which funds managed by Blackstone Credit & Insurance will invest $475 million in connection with a triple net lease transaction to construct a highly automated grocery distribution center in Burlington, N.C.

Under the triple net lease agreement, Blackstone Credit & Insurance will own the facility and will cover all in-scope construction costs. Once construction is complete, 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.

“We are pleased to support Ahold Delhaize USA and enable a critical long‑term investment in its U.S. supply chain,” says Christopher Yonan, Head of European Infrastructure, Blackstone Credit & Insurance. “This investment reflects our focus on partnering with leading investment grade corporations globally by providing flexible, low-cost capital through our credit and insurance platform.”

“This groundbreaking marks another exciting step forward in strengthening our supply chain network and ensuring we can serve our customers with the freshest products every day,” says JJ Fleeman, Chief Executive Officer, Ahold Delhaize USA. “We’re proud to invest in North Carolina – one of our home states for nearly 70 years – and to continue building on our commitment to serving local customers and communities by providing access to nutritious and affordable options.”

The Burlington facility will incorporate modern automation and sustainability features to enhance operational efficiency and minimize environmental impact. Construction is underway, with the site anticipated to begin operations in 2029. The Tippmann Group, specializing in construction of temperature-controlled food plant and cold storage warehouse facilities, will lead construction of the site. Additionally, WITRON will provide automated technology and integrated logistics solutions for the facility.

“At ADUSA Distribution and ADUSA Transportation, we are focused on delivering best-in-class service to the grocery brands we support,” said Sanja Krajnovic, Chief Supply Chain Officer and EVP, ADUSA Distribution and ADUSA Transportation. “The Burlington distribution center will be our largest facility in the network, enabling us to expand our capacity, implement new technology, and deploy automation capabilities as we modernize our supply chain. We look forward to welcoming new associates to our team who are passionate about serving the millions of customers who rely on our brands every week.”

Ahold Delhaize USA and ADUSA Distribution previously announced plans in October 2025 to develop an $860 million, highly automated distribution center in Burlington, N.C. The facility is expected to add more than one million square feet of additional distribution infrastructure, delivering fresh and frozen grocery items to Food Lion stores.

The investment is structured to align the timing of costs with the long-term benefits of the facility. The long-term lease approach supports a project of this scale, reduces refinancing risk and enables Ahold Delhaize USA to deploy capital efficiently to advance major infrastructure investments.

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.

J.P. Morgan acted as exclusive financial advisor to Ahold Delhaize USA and A&O Shearman served as legal counsel to Ahold Delhaize USA. Milbank LLP acted as legal counsel to Blackstone Credit & Insurance.

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