Freehold Properties, a newly formed real estate investment company focused on specialized agricultural, industrial and cannabis properties, has agreed to invest $28.75 million in funding to Chicago-based multi-state cannabis operator Revolution Global.
Revolution Global said it will use the funding to more than double the capacity of its flagship cultivation facility.
“As the Illinois cannabis sector feverishly prepares for adult-use, Revolution sees enormous potential to grow and lead in an exploding industry,” said Mark de Souza, CEO of Revolution Global.
Revolution currently leases a 75,000-square-foot cultivation facility spanning more than 70 acres in Delavan, Ill. The company is planning to construct a new sister 75,000-square-foot indoor facility and additional greenhouse space on the existing site.
The Delavan facility is among the largest producers of medical cannabis in Illinois.
The development will be funded through Freehold's leasehold mortgage over a period of nine to 12 months, after which Freehold will have the option to purchase all of the existing facilities for $30 million by March 2021.
“With adult-use recreational sales beginning in January 2020, we believe Illinois's cannabis sector is poised for exponential growth,” said Don Brain, co-founder, chairman and CEO of Freehold Properties, in a statement. “The financing we provided is tailored to their growth needs and provides Freehold access to a proven multi-state operator in a highly coveted market.”
