Aldi Plans So. Calif. DC: Report

MORENO VALLEY, Calif. — Aldi plans to open a Southern California distribution center in mid-2014 of just under 1 million square feet here, in this city 60 miles east of Los Angeles, according to local reports.

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Aldi officials could not be reached immediately for comment.

A story in the Riverside Press-Enterprise said the Batavia, Ill.-based chain will begin construction later this year on the facility — a 935,000-square-foot building that will include a 50,000-square-foot regional office — in the West Ridge Industrial Park. Aldi will own the property and develop the facility on its own, the story said, at a reported cost of $55 million. As part of an incentive from the city, Aldi will get a discount of 20% on utility charges for 18 years, the reports said.

Read more: Aldi Sets Houston Openings

Aldi previously had been reported as a potential buyer for some of the Fresh & Easy locations that are for sale in California. Aldi's U.S. division is run by the Aldi-Sud division of Germany-based Aldi and has reportedly been seeking to expand into Southern California. It currently operates primarily in the Midwest and Southeast.

Moreno Valley is the second-largest city in Riverside County, located 60 miles east of downtown Los Angeles and 12 miles south of San Bernardino.