MedMen Real Estate Assets Seed New Investment Vehicle
Transaction Unlocks Capital as Company Continues to Grow its Footprint
LOS ANGELES, October 18, 2018–(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) today announced that it has reached agreement to sell a significant portion of its real estate assets to the newly formed Treehouse Real Estate Investment Trust (“Treehouse”). Treehouse is a real estate investment vehicle that capitalizes on the cannabis industry’s continued growth; initial investors include real estate firms New England Development, Samuels & Associates and Visconsi Companies, in partnership with Stable Road Capital.
The initial transaction includes three properties and is expected to generate approximately $12.5 million of proceeds to the Company after repayment of debt. Additional real estate assets in MedMen’s portfolio are expected to be sold to Treehouse over the next 12 months. The properties sold to Treehouse will be leased backed to MedMen or its subsidiaries at market rates under long-term leases.
MedMen owns and controls some of the best real estate in today’s burgeoning cannabis industry and they will serve as an important seed portfolio for Treehouse. Given the investor interest in the sector, this vehicle made a lot of sense. More importantly, this creates liquidity and creates an efficient form of off-balance sheet financing to foster further growth for MedMen and others in the industry who wish to grow.
Brian Kabot, Chief Investment Officer of Stable Road
“Thoughtful property owners across the country have begun to consider the role that cannabis retailers play in their overall leasing strategy, putting Treehouse at the vanguard of an emerging business opportunity,” commented Scott Baker of New England Development. “Many cannabis operators own prime parcels in highly sought after communities, offering a variety of opportunities for return on investment and future development.”
The three initial properties included in the transaction are:
- MedMen Abbot Kinney – the only cannabis store in what GQ calls the “Coolest Block in America,” 1308-1312 Abbot Kinney Blvd., Venice, California.
- MedMen Beverly Hills – the store is in a bustling shopping district adjacent to the city of Beverly Hills, 106-110 S. Robertson Blvd., Los Angeles, California.
- MedMen Downtown Las Vegas – the Company’s first branded store in Las Vegas in the heart of the city’s Arts District and near the Fremont Street Experience, 823 S. 3rd Street, Las Vegas, Nevada.
MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of progressive marijuana laws. Visit http://www.medmen.com
ABOUT NEW ENGLAND DEVELOPMENT:
For over forty years, New England Development has taken a creative, entrepreneurial approach to real estate development and management – delivering and sustaining successful projects across a wide range of property types. These projects transform complex challenges into preferred locations, generate long-term value to communities, afford compelling opportunities for local and national businesses, and offer sought-after experiences to a wide range of consumers. The company is acclaimed for creating some of the country’s most widely-recognized and successful regional centers, as well as multifaceted developments that combine retail, residential, hotel, and office uses. Outlet centers, high-end and street-front retail, airport retail, golf courses, restaurants, and marinas round out New England Development’s robust portfolio. Visit http://nedevelopment.com/
ABOUT SAMUELS & ASSOCIATES:
Samuels & Associates, headquartered in Boston, MA, has been building communities for more than two decades. Pioneers in development, leasing and merchandising, and property management, the Samuels & Associates team specializes in creating mixed-use development projects with active pedestrian spaces, flexible and inspiring commercial spaces, and dynamic combinations of retailers and restaurateurs. Samuels & Associates is guided by the belief that people should live, work, shop and play in dynamic communities that inspire and enrich all aspects of their lives.
ABOUT STABLE ROAD CAPITAL:
Stable Road Capital is a family office employing an opportunistic approach to fundamental value investing. The Firm focuses on acquiring and investing in high quality operating businesses, assets and funds. While the Firm is generally industry agnostic, Stable Road Capital has dedicated considerable resources to advising and investing in the cannabis sector, focusing on large vertically integrated players, individual brands, and industry specific private equity funds. Visit https://www.stableroadcapital.com/
ABOUT VISCONSI COMPANIES LTD:
Visconsi Companies, Ltd., is a fourth generation, family-owned developer and manager of retail and other properties and a provider of real estate advisory services. The company’s activities span coast-to-coast including a property portfolio of two million square feet; many completed, in-progress and planned developments; plus prime land holdings. We continue to expand into new markets, developing innovative shopping centers, single tenant net lease programs, healthcare facilities and other real estate ventures.
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