Power REIT Signs Agreement to Acquire 522,530 Square Foot Greenhouse Cultivation and Processing Facility for $18.5 Million
May 25 2021 - 3:00PM
Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”)
today announced that it has entered into an agreement to acquire
what will be Michigan’s largest greenhouse cannabis cultivation and
processing facility (the “Property”) for approximately $18.5
million. The Property is strategically located in an area that
offers the potential for unlimited cannabis cultivation licenses
and features 522,530 square-feet of high-tech greenhouse and
processing space. The approximately 66 acre property has the
capability to add significantly more cultivation and processing
space with plans in place to add 330,236 square feet as a potential
next phase.
This state-of-the-art facility features advanced
greenhouse cultivation controls and a state-of-the-art
irrigation/fertigation system. This is a turnkey setup that is
ready to start growing immediately offering an attractive
speed-to-revenue opportunity. Power REIT is finalizing a budget for
upgrades that will enhance the cultivation performance for cannabis
as a crop.
Power REIT has an approximately 75-day due
diligence period followed by a 30-day period to close the
transaction which can be extended by up to 30 additional days.
Power REIT is actively working to finalize its due diligence and
hopes to expedite the closing although there can be no assurance as
to when or if the transaction will close.
David Lesser, Power REIT’s Chairman and
CEO, commented, “This acquisition is a great opportunity
for Power REIT to gain scale. Like our other Controlled Environment
Agriculture properties, this has significant potential for
expansion. Once operational, this will be one of the largest
cannabis greenhouse cultivation facilities in the United States
even before any expansion. With this possible acquisition, Power
REIT enters the Michigan market which is currently experiencing
dramatic growth in cannabis sales at prices that are higher than
national averages. The acquisition is consistent with Power REIT’s
investment strategy of focusing on sustainability which is
associated with growing in a greenhouse which will be less
expensive and have a much lower carbon footprint than growing in an
industrial property.”
Mr. Lesser continued, “We were
able to seize this opportunity due to our flexible balance sheet,
our expansive network and focused investment strategy. As we
finalize the transaction details, we will be better able to provide
guidance as to the impact on Core FFO but we currently believe the
returns should be generally similar to recent transactions which
would be extremely accretive to Core FFO. We look forward to
providing further updates as information becomes available.”
STATEMENT ON
SUSTAINABILITY
Power REIT owns real estate related to
infrastructure assets including properties for Controlled
Environment Agriculture (CEA Facilities), Renewable Energy and
Transportation.
CEA Facilities, such as
greenhouses, provide an extremely environmentally friendly
solution, which consume approximately 70% less energy than indoor
growing operations that do not benefit from “free” sunlight. CEA
facilities use 90% less water than field grown plants, and all of
Power REIT’s greenhouse properties operate without the use of
pesticides and avoid agricultural runoff of fertilizers and
pesticides. These facilities cultivate medical Cannabis, which has
been recommended to help manage a myriad of medical symptoms,
including seizures and spasms, multiple sclerosis, post-traumatic
stress disorder, migraines, arthritis, Parkinson's disease, and
Alzheimer’s.
Renewable Energy assets are
comprised of land and infrastructure associated with utility scale
solar farms. These projects produce power without the use of fossil
fuels thereby lowering carbon emissions. The solar farms produce
approximately 50,000,000 kWh of electricity annually which is
enough to power approximately 4,600 home on a carbon free
basis.
Transportation assets are
comprised of land associated with a railroad, an environmentally
friendly mode of bulk transportation.
ABOUT POWER REIT
Power REIT, with a focus on the “Triple Bottom
Line” and a commitment to Profit, Planet and People is a
specialized real estate investment trust (REIT) that owns
sustainable real estate related to infrastructure assets including
properties for Controlled Environment Agriculture, Renewable Energy
and Transportation. Power REIT is actively seeking to expand its
real estate portfolio related to Controlled Environment Agriculture
for the cultivation of food and cannabis.
Additional information about Power REIT can be
found on its website: www.pwreit.com
CAUTIONARY STATEMENT ABOUT
FORWARD-LOOKING STATEMENTS
This document includes forward-looking
statements within the meaning of the U.S. securities laws.
Forward-looking statements are those that predict or describe
future events or trends and that do not relate solely to historical
matters. You can generally identify forward-looking statements as
statements containing the words "believe," "expect," "will,"
"anticipate," "intend," "estimate," "project," "plan," "assume",
"seek" or other similar expressions, or negatives of those
expressions, although not all forward-looking statements contain
these identifying words. All statements contained in this document
regarding our future strategy, future operations, future prospects,
the future of our industries and results that might be obtained by
pursuing management's current or future plans and objectives are
forward-looking statements. You should not place undue reliance on
any forward-looking statements because the matters they describe
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond our control. Our
forward-looking statements are based on the information currently
available to us and speak only as of the date of the filing of this
document. Over time, our actual results, performance, financial
condition or achievements may differ from the anticipated results,
performance, financial condition or achievements that are expressed
or implied by our forward-looking statements, and such differences
may be significant and materially adverse to our security
holders.
CONACT:
David H. Lesser, Chairman & CEO |
Mary Jensen, Investor Relations |
dlesser@pwreit.com |
mary@irrealized.com |
212-750-0371 |
310-526-1707 |
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301 Winding RoadOld Bethpage, NY
11804 |
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www.pwreit.com |
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