NewLake Capital Partners and GreenAcreage Real Estate Corp. Announce Closing of Merger, Creating One of the Largest Cannabis ...
March 18 2021 - 9:45AM
NewLake Capital Partners, Inc. (“NewLake”), and GreenAcreage Real
Estate Corp. (“GreenAcreage”), both investment vehicles focused on
acquiring a diversified real estate portfolio of industrial and
retail properties leased to high-quality companies in the cannabis
industry, today are announcing the completion of their merger and
rebranding of the combined company as NewLake Capital Partners,
Inc. (the “combined company”).
With the closing of this merger, the combined company is one of
the largest cannabis real estate companies in the industry. The
combined company owns a diversified portfolio of 24 properties
across 9 states with some of the highest credit-quality tenants in
the cannabis industry including Curaleaf, Cresco, Columbia Care and
Trulieve. The combined company has over $325 million in assets and
over $110 million in cash to pursue further investments and
diversification of its real estate portfolio.
David Weinstein, Chief Executive Officer and a member of the
board of directors of the combined company is the former CEO of MPG
Office Trust, a NYSE-listed office REIT. Mr. Weinstein also spent
nine years at Belvedere Capital, a real estate investment firm, and
ten years at Goldman Sachs in the real estate investment banking
and special situations groups. Additionally, he has been a member
of the board of directors of three public companies.
David Weinstein commented, “Both of our respective teams are
excited to have completed this merger. Strategically, through this
combination, the combined company has emerged as one of the largest
real estate companies in the cannabis industry. Not only do we
expect our merger to accelerate growth through scale, but our
combined team, including myself and Anthony Coniglio, and our board
of directors, including Gordon DuGan, have the experience and
proven track record in the capital markets and in real estate
investment to effectively execute on our strategy of growth through
investment in high-quality cannabis properties strategically
located throughout the United States.”
Anthony Coniglio, founder and Chief Executive Officer of
NewLake, has been appointed as the combined company’s President and
Chief Investment Officer and a member of its board of directors.
Mr. Coniglio led the creation of NewLake and the acquisition of 19
cannabis real estate properties over the past two years. He has
been growing businesses for more than 20 years. Most recently, he
led a start-up from concept to exit, selling to one of the leading
competitors in the segment. Mr. Coniglio used a combination of
acquisitions, partnerships and organic growth to execute a
successful business plan and exit. Previously, Mr. Coniglio was a
Managing Director at JPMorgan, leading three separate investment
banking businesses to #1 positions over his 14 year career at the
firm. Additionally, he was an independent director of a NYSE-listed
company, serving on the audit committee.
Anthony Coniglio commented, “The combination of our portfolios
creates one of the leading cannabis real estate platforms in the
industry and positions us to be an important long-term real estate
partner to our valued tenants. Diversification is the centerpiece
of our strategy, and we own some of the highest-quality cannabis
properties located in limited license jurisdictions. With over $110
million of cash, we intend to aggressively pursue further
investments and diversification. We are already in due diligence on
several other potential investment opportunities in an effort to
further accelerate growth.”
Gordon DuGan, Chairman of the combined company’s board of
directors, has over 25 years of REIT management experience.
Currently, he is Chairman of INDUS Realty Trust (NASDAQ: INDT) and
Blackbrook Capital. Most recently, Mr. DuGan was CEO of Gramercy
Property Trust, a NYSE-listed net-lease REIT that was sold to
Blackstone for approximately $7.6 billion. Prior to that, Mr. DuGan
was President & CEO of W.P. Carey.
Gordon DuGan stated, “The scale and long term growth opportunity
of the cannabis industry continues to unfold as evidenced by
legislative reform and specifically the high margin fundamentals of
the leading operators in our industry. For these operators, real
estate is not a core competency or key driver of value; therefore
sale leasebacks have been and should remain an effective tool for
the maturing cannabis industry. Through the combination of NewLake
and GreenAcreage, we believe the combined company has the core
strength of the companies’ existing portfolios, a robust pipeline
of investment opportunities and the team to execute on our growth
strategy.”
About NewLake Capital Partners, Inc.NewLake is
an internally managed investment vehicle focused on acquiring a
diversified real estate portfolio of industrial and retail
properties in the cannabis industry to be leased to state-licensed
operators in limited license states. NewLake has acquired a
portfolio from coast-to-coast with tenants across the supply chain
including cultivation, manufacturing and retail. NewLake has
elected to be taxed as a real estate investment trust for U.S.
federal income tax purposes. For more information please
visit www.newlake.com.
Forward-Looking StatementsThis press release
contains “forward-looking statements.” Forward-looking statements
can be identified by words like “may,” “will,” “likely,” “should,”
“expect,” “anticipate,” “future,” “plan,” “believe,” “intend,”
“goal,” “project,” “continue” and similar expressions.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
merger (including the expected benefits of the merger), future of
our business, future plans and strategies, projections, anticipated
events and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of our
control. Our anticipated impact of the merger (including the
expected benefits of the merger) and our actual results and
financial condition may differ materially from those indicated in
the forward-looking statements. Therefore, you should not rely on
any of these forward- looking statements. Important factors that
could cause our anticipated impact of the merger (including the
expected benefits of the merger) and our actual results and
financial condition to differ materially from those indicated in
the forward-looking statements include, among others, the ability
to integrate the combined company, changes in the condition of the
U.S. economy and, in particular, the U.S. real estate market.
The forward-looking statements in this press release are made
only as of the date of this press release, and except as otherwise
required by federal securities law, we do not have any obligation
to publicly update or revise any forward-looking statements to
reflect subsequent events or circumstances.
Contact Information:Anthony Coniglio, President
and Chief Investment Officeraconiglio@newlake.com
Media Contact:KCSA Strategic
CommunicationsValter Pinto and McKenna Miller(212)
896-1254Valter@KCSA.com
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