Power REIT expands acquisition focus to include agriculture real estate.
Power REIT is announcing an expanded focus for acquisitions. In addition to its existing high quality real estate related to transportation infrastructure and alternative energy, Power REIT is expanding its focus to include agricultural real estate with a focus on Controlled Environment Agriculture. Power REIT intends to focus on CEA related real estate for growing food as well as cannabis. Power REIT has an active pipeline of CEA projects it is pursuing. Power REIT is focused on investing in the cultivation and production side of the cannabis industry through the ownership of real estate. As such it is not directly in the cannabis business and also not even indirectly involved with facilities that sell cannabis directly to consumers. By serving as a landlord, Power REIT believes it can generate attractive risk adjusted returns related to the fast growing cannabis industry and that this offers a safer approach than investing directly in cannabis operating businesses. On July 15, 2019, through wholly owned subsidiaries, Power REIT is announcing that it has completed the acquisition of two greenhouse properties in southern Colorado. One property was acquired for $1,075,000 and is 2.11 acres and has an existing greenhouse and processing facility totaling 12,996 square feet. The other property was acquired for $695,000 and is 5.2 acres and has an existing greenhouse and processing facility totaling 5,616 square feet. The total combined purchase price of $1,770,000 plus acquisition expenses was paid with existing working capital. Concurrent with the closing on the acquisitions the company entered into leases with a tenant that is licensed for the production of medical marijuana at the facilities. The tenant is an affiliate of a company that is active in the Colorado cannabis market and currently has two indoor cultivation facilities and five dispensary locations. The tenant has also received a preliminary approval to operate a dispensary in the town where the properties are located.
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|Date:||Jul 15, 2019|
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