Ahold Delhaize USA has partnered with Blackstone Credit & Insurance to ensure that its planned grocery distribution center in Burlington, N.C., comes to fruition. The credit investor will invest $475 million in connection with a triple-net lease transaction to construct the highly automated facility.
The grocery retail group initially released its plans to build an $860 million state-of-the-art distribution center in Burlington in October 2025. This future facility will be used to deliver fresh and frozen grocery items to stores operated by southeastern grocery store chain Food Lion.
Under the triple-net lease agreement, Blackstone Credit & Insurance will own the facility and fund 100% of 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.
The investment is structured to align the timing of costs with the long-term benefits of the facility. According to the food retailer, 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.
“Through the new distribution center, ADUSA Distribution and ADUSA Transportation will expand their capacity to support Food Lion’s growth in the state, along with bringing new jobs," said JJ Fleeman, CEO of Ahold Delhaize USA. "We continue to be very excited about locating this facility in North Carolina as we grow our presence in a state where our companies have done business for more than 65 years.”
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 more than 500 associates within the ADUSA Distribution and ADUSA Transportation companies over time.
“We are pleased to support Ahold Delhaize USA and enable a critical long?term investment in its U.S. supply chain,” added Christopher Yonan, head of European infrastructure at New York-based 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.”
Blackstone Credit & Insurance’s Infrastructure and Asset Based Credit group manages more than $100 billion, as of Sept. 30, 2025.
Meanwhile, Ahold Delhaize USA continues to find ways to improve its omnichannel grocery delivery strategy. The company recently revealed that it was closing six centralized fulfillment locations in Pennsylvania and Virginia. The facilities served the Giant Food and The Giant Co. retail banners.
According to Ahold Delhaize USA, the decisions to close these locations were made after carefully considering customer trends and preferences for home delivery.
In addition to using in-store fulfillment for customers' e-commerce orders, Ahold Delhaize USA will continue relationships with third-party fulfillment partners like Instacart and DoorDash for delivery. Using this approach, the company can position each of its brands to deliver on customers' expectations for quick pickup and delivery options, and, where possible, in as little as 30 minutes.
Ahold Delhaize USA is a division of global food retailer Ahold Delhaize, which is based in Zaandam, Netherlands. Its U.S. brands -- Food Lion, The Giant Co., Giant Food, Hannaford, and Stop & Shop -- comprise the largest grocery retail group on the East Coast and the fourth largest in the nation when considered together. The company is No. 11 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America. PG also named Ahold Delhaize USA one of its Retailers of the Century and among the 10 Most Sustainable Grocers of 2025.