LAS VEGAS, Aug. 26, 2019 /PRNewswire/ -- Freehold Properties, Inc., a newly formed real estate investment company focused on specialized agricultural, industrial and cannabis properties, today announced it has agreed to acquire six buildings from Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF) for total consideration of approximately $28.3 million. The acquisition, which is comprised of approximately $25.5 million in cash and approximately $2.8 million of Freehold common stock, is expected to close by the end of August 2019, subject to customary closing conditions.
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. The properties included in the sale are:
- Cultivation/production facility in Webster, MA
- Cultivation/production facility in Bellmawr, NJ
- Retail dispensary in Bellmawr, NJ
- Retail dispensary in Fort Pierce, FL
- Retail dispensary in Daytona Beach, FL
- Retail dispensary in Provincetown, MA
"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," noted 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."
About Freehold Properties
Freehold Properties is a newly formed, internally managed real estate investment company that invests in specialized agricultural, industrial and cannabis properties leased to experienced, multi-state-licensed operators. The Company's management team, board of directors and strategic advisors have extensive experience in the cannabis industry and in founding and operating a publicly traded real estate investment trust. Freehold's investment strategy includes a focus on best-in-class and well-capitalized multi-state operators (MSOs) with vertically integrated property types from cultivation to production to retail dispensary.
About Curaleaf Holdings
Curaleaf Holdings, Inc. is the leading vertically integrated multi-state cannabis operator in the United States. It is a high-growth cannabis company with a national brand known for quality, trust and reliability. The company is positioned in highly populated, limited-license states, and currently operates in 12 states with 48 dispensaries, 13 cultivation sites and 12 processing sites. Curaleaf has the executive expertise and research and development capabilities to provide leading service, selection, and accessibility across the medical and adult-use markets, as well as in the CBD category through its Curaleaf Hemp brand and Bido brand for pets. On May 1, 2019, Curaleaf announced the acquisition of the Select brand from Cura Partners for approximately $949 million. On July 17, 2019, Curaleaf announced the acquisition of Grassroots for approximately $875 million.
Forward Looking Statements
This press release contains statements that Freehold Properties, Inc. believes to be "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding Curaleaf Holdings, Inc., the leased properties set forth above and the overall real estate market, are forward-looking statements. When used in this press release, words such as we "expect," "intend," "plan," "estimate," "anticipate," "believe" or "should" or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, such as changes in the overall real estate market and U.S. economy, that could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Therefore, you should not rely on any forward-looking statements. Freehold Properties, Inc. disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Freehold Properties, Inc.