Cannabis Net Lease REIT Completes $141M Private Placement
Recently formed net-lease REIT GreenAcreage Real Estate plans to provide capital to support sale-leaseback and build-to-suit transactions in the regulated cannabis industry.
NEW YORK—GreenAcreage Real Estate, a recently formed net-lease REIT that will provide sale-leaseback and build-to-suit transactions to the regulated cannabis industry, has completed a private placement offering of 7,060,150 shares of its common stock for gross proceeds of $141 million.
GreenAcreage is an independently managed REIT led by CEO Katie Barthmaier, President David Carroll, Chairman Gordon DuGan, COO Wilson Pringle, and CIO Jeff Lefleur.
GreenAcreage has formed a relationship with Acreage Holdings, one of the largest multi-state operators in the industry, with Acreage providing GreenAcreage with an initial pipeline of properties for sale and leaseback as well as a right of first offer until May 31, 2022 for future real estate properties and development projects. GreenAcreage plans to offer Acreage and other cannabis operators with long-term capital.
“We are pleased to have completed our initial capital raise and excited to build a diversified portfolio of industrial and retail cannabis real estate,” Barthmaier said in prepared remarks. “Our objective is to allow companies in the medical and recreational industry to release capital tied up in their fixed assets and redeploy it into their core business.”
Ladenburg Thalmann & Co., a subsidiary of Ladenburg Thalmann Financial Services acted as the lead initial purchaser/placement agent for the offering, Revere Securities acted as co-initial purchaser/placement agent.