Curaleaf Holdings Strikes Sale-Leaseback Deal on Six Cannabis Properties
Freehold will lease the properties to Curaleaf pursuant to a long-term, triple-net lease. The company also has the right of first offer to purchase additional properties from Curaleaf as its preferred real estate partner.
WAKEFIELD, MA—Locally-based Curaleaf Holdings Inc. has signed a sale-leaseback transaction with Freehold Properties of Las Vegas for six of its cannabis properties in Florida, Massachusetts and New Jersey in a deal valued at $28.3 million.
The properties included in the sale-leaseback are: a cultivation/production facility in Webster, MA; a cultivation/production facility in Bellmawr, NJ and retail dispensaries in Bellmawr, NJ, Fort Pierce, FL, Daytona Beach, FL and Provincetown, MA. Freehold will lease the properties to Curaleaf pursuant to a long-term, triple-net lease. The company also has the right of first offer to purchase additional properties from Curaleaf as its preferred real estate partner.
Curaleaf says the sale price for the six properties covers initial investment, plus all tenant improvements made to date and the proceeds will go towards Curaleaf’s continued expansion in the United States. In addition, Curaleaf intends to access further real estate capital to finance additional operational facilities and certain current expansionary construction projects, the company states.
“This transaction provides an additional stream of liquidity for us with an attractive cost of financing previously not available in our industry,” says Joseph Lusardi, CEO of Curaleaf. “We are delighted to see more traditional sources of financing becoming available to the cannabis industry and intend to deploy the proceeds to continue our rapid expansion and create shareholder value.”
The firm currently operates in 12 states with 48 dispensaries, 13 cultivation sites and 12 processing sites. On May 1, Curaleaf announced the acquisition of the Select brand from Cura Partners for approximately $949 million. On July 17, Curaleaf announced the acquisition of Grassroots for approximately $875 million.
“When we formed Freehold to capitalize on the growing need for capital among the leading multi-state operators in the U.S, we intentionally focused on creating relationships with best-in-class and well-capitalized companies,” says Don Brain, co-founder, chairman and CEO of Freehold Properties. “Curaleaf has established a large footprint in desirable markets and locations as the leading vertically integrated cannabis operator in the country. We are pleased to begin executing our growth strategy with such a strong operating partner, and we look forward to working closely with them to meet their future capital needs.”