Curaleaf enters $28 million sale-leaseback deal with Freehold Properties

Linda Lindner//August 27, 2019

Curaleaf Holdings Inc. said it entered into a sale-leaseback contract with specialty real estate company Freehold Properties.

The deal for roughly $28.3 million in total considerations covers six Curaleaf properties: two of which are in New Jersey, two in Massachusetts, with the remaining two in Florida.

Curaleaf dispensaries are dedicated to providing premium cannabis products to patients. - CURALEAF NEW JERSEY — The sale-leaseback deal includes two New Jersey locations. – CURALEAF NEW JERSEY

One property in Massachusetts and one in New Jersey are cultivation and production facilities, the rest are dispensaries.

The sale price for the six properties covers initial investment plus all tenant improvements made to date. The proceeds will go toward Curaleaf’s continued expansion in the United States. Curaleaf also intends to access further real estate capital to finance additional operational facilities and certain current expansionary construction projects.

In a press release announcing the deal, the company highlighted the move as a fresh source of capital stating, “the sale-leaseback with Freehold provides an additional stream of liquidity for us with an attractive cost of financing previously not available in our industry.”