What should I check before buying a cold storage warehouse?

A cold store is valuable to customers only while it holds temperature without fail. So the best checks are the ones that test whether it has done that, and whether it will keep doing so after the sale. Some of this is physical, some is paperwork. Bring in people with cold-room experience for both.

The refrigeration plant

Ask a refrigeration contractor, not the seller, to inspect the compressors, condensers, evaporators and controls. Request the service history, the age of the main equipment and any repairs that were postponed. The contractor can tell you what is near the end of its life and what a replacement involves.

Shell, floors and backup power

Look at the insulated panels, door seals and freezer floor for damage, ice build-up or moisture. Ask when backup power was last tested under load, who responds when an alarm sounds at night, and how long the response takes. A short failure can spoil a customer’s stock.

Temperature records and claims

Read the temperature logs and the record of excursions, meaning times when a room drifted out of range. Ask how each was handled and whether a claim followed. Gaps in logging deserve questions. Our page on what to check before buying a food distribution company covers related customer-side checks.

Customer contracts and audits

• Who bears the loss if stored goods spoil, and any limits on it
• Whether contracts can be assigned to a buyer, and whether customers must consent
• Audits that food or pharmaceutical customers run, and the results
• How long the main accounts have stayed

Which licences or approvals the business needs is a question for your lawyer, who can check it for the type of goods stored.