Cannabis-focused REIT Innovative Industrial Properties Inc (NYSE: IIPR) is expanding its real estate partnership with Green Peak Innovations in Michigan.
What Happened
In August, Green Peak Innovations and Innovative Industrial Properties entered into a lease agreement with Green Peak Innovations involving the latter's facility at 10070 Harvest Park in Dimondale, Michigan.
Under the amendment to the lease, Innovative Industrial Properties will provide an additional $18 million in funding for further expansion of cannabis cultivation and processing facilities.
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The amendment also adjusted the base rent under the lease to take into account the additional funding and extended the term of the lease agreement. The additional funding raised Innovative Industrial Properties' total investment in the property leased to Green Peak to $31 million.
Why It's Important
Green Peak Innovations is one of the largest medical-use cannabis license holders in Michigan. The company in March raised $30 million in an oversubscribed mezzanine debt round to expand its footprint in Michigan. Earlier this month, Green Peak Innovations entered into an agreement to acquire one of 22 vertical licenses in Florida.
The additional funding will enable Green Peak Innovations to develop 55,000 square feet of industrial space for its operations in addition to the previous 56,000 square feet.
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