Pacific Century Holdings Announces Real Estate Investment Fund for the Cannabis Operators
PCH Fund 1 targets limited supply of real estate for rapidly growing industry.
Seattle, WA – June 21, 2017 – Pacific Century Holdings Inc. (PCH), a strategic partner for legalized cannabis operators and investors, today announced the opening of a $50 million real estate investment fund, PCH Fund 1, an investment vehicle capitalizing upon the scarcity of real estate assets for the cannabis industry.
The cannabis industry is poised for significant growth but the market continues to experience a lack of traditional capital due to disparities in federal and state law. As a result, leasing or acquiring property for marijuana operations is complex, limited, and hard to obtain. The PCH Fund 1 was established to capitalize on this demand in the market by acquiring, owning and managing specialized agricultural, industrial, and retail properties for lease by experienced owners of state-regulated cannabis businesses.
By focusing on real estate assets for legalized cannabis businesses, PCH Fund 1 provides investors a unique, geographically diversified portfolio of high value commercial properties. In addition to their value based on a current limited supply, properties will be selected based on their potential for strong performance as a traditional commercial real estate assets. This requirement will ensure their value continues as the cannabis market matures and the availability of real estate more closely matches industry demand.
To insure proper risk mitigation, the fund is operated by a management team with an expert understanding of local regulations, investment opportunities associated with this market, and deep seeded relationships with compliant cannabis operators. The team is led by Tony Repanich, President and Chief Executive Officer, and Justin Braune, Chief Business Development Officer. Repanich was Executive Vice President at Peoples Bank, a community bank based in Bellingham, Washington. During his 22-year tenure, Repanich helped grow the retail bank from less than $200 million in assets to its current size of nearly $1.6 billion. Braune is a licensed Real Estate Broker in California and was President of MJIC Inc. a diversified operating company in the legal cannabis industry where he focused on real estate acquisitions.
We developed a fund strategy that allows investors to take full advantage of the current exponential growth in the cannabis industry, and enables operators to build and develop successful businesses. We believe this two-fold approach provides a good platform for outperforming traditional real estate returns. We have assembled a team of industry experts to make prudent capital allocations and manage assets within this complex and rapidly evolving market.
Tony Repanich, President and Chief Executive Officer of Pacific Century Holdings
Capitalizing on a fast-growing legal cannabis market
According to Arcview Market Research, North American consumers spent $6.7 billion on legal cannabis products in 2016, up 34 percent from $5 billion in 2015. These results are in advance of prolific legalization efforts planned over the next two years in support of medical and adult recreational use. New markets across the United States alone are expected to spur industry growth to over $21 billion by 2021.
Continued cannabis legalization will drive competition and an increased compliance burden for existing operators. PCH has the experience necessary to evaluate and collaborate with operators to ensure they can manage costs, are developing a value proposition that allows them to maintain margin, and employ strong operational and compliance controls to limit risk.
About PCH Fund 1
PCH Fund 1 targets the acquisition of properties valued between $1 million and $5 million that meet the unique regulatory and other operating requirements of the cannabis industry. Additionally, the Fund will select locations that have strong potential for traditional commercial businesses, which can be developed for cannabis-based businesses as the market matures and demand for this real estate continues to grow.
About Pacific Century Holdings
Headquartered in Seattle, Pacific Century Holdings (PCH) manages PCH Fund 1, an investment vehicle capitalizing on the scarcity of real estate assets for the cannabis industry. Led by Tony Repanich, president and CEO, and Justin Braune, chief business development officer, along with strategic advisors Harold Snow, co-founder of the Garvey Schubert Barer cannabis practice group, AC Braddock, CEO of Eden Labs, and Jesse McConnell, CEO of Rubicon Organics Group of Companies, PCH brings significant experience in cannabis law, cultivation, processing, commercial banking, and real estate development. For more information about PCH and PCH Fund 1 or to schedule a meeting to discuss investment opportunities, please visit https://www.pacificcenturyholdings.com/ or contact info@pacificcenturyholdings.com.
