Marijuana investment trust raises $133M, will buy MedMen properties

MedMen Enterprises’ strategy to spin off additional real-estate holdings and invest the proceeds in its nationwide expansion has taken another big step.

The Los Angeles-based cannabis company announced that Treehouse Real Estate Investment Trust, a collaboration between MedMen and the California-based investment firm Stable Road Capital, completed a $133 million raise and will use part of the funds to purchase MedMen properties.

“MedMen’s relationship with Treehouse will allow us to unlock significant value for MedMen shareholders by spinning out our real-estate holdings and deploying the proceeds” into growth opportunities, MedMen CEO and co-founder Adam Bierman said in a statement.

Here are key details of the relationship:

  • Treehouse, which is governed by an independent board, has a management contract with MedMen to oversee day-to-day operations until Treehouse goes public.
  • In October, MedMen announced it had agreed to sell three cannabis properties in California and Nevada to the newly formed Treehouse for roughly $12.5 million.
  • Treehouse has a three-year right of first offer on additional MedMen-owned facilities and development projects.
  • MedMen, which currently operates 16 stores and three cultivation and processing facilities, plans to use the proceeds from property sales to Treehouse to help fund a national buildout. That potential footprint includes 76 retail licenses and 16 cultivation and manufacturing licenses in 12 states.
6 comments on “Marijuana investment trust raises $133M, will buy MedMen properties
  1. Erminia on

    I Own a bank building in city of Las Vegas with SUP approved for dispensary and like to know if possible to have the contact information for Treehouse real estate thank you

    Reply

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