LAS VEGAS and CHICAGO, Oct. 15, 2019 /PRNewswire/ -- PRESS RELEASE -- Freehold Properties, a newly formed real estate investment company focused on specialized agricultural, industrial and cannabis properties, and Revolution Global, a Chicago-based multi-state cannabis operator, have announced that Freehold will provide Revolution up to $28.75 million in real estate capital expansion funding. Utilizing the capital from Freehold, Revolution plans to more than double the capacity of its flagship cultivation facility.
Revolution currently leases a 75,000-square-foot cultivation facility on over 70 acres in Delavan, Ill. Revolution plans to construct a new sister 75,000-square-foot indoor facility and additional greenhouse space on the existing site. Freehold's leasehold mortgage will fund development costs for the expansion project. Over a period of nine to twelve months, Revolution is expected to make draws on the leasehold mortgage. Rent will accrue during the construction period, and Freehold has an option to purchase all of the existing facilities for $30 million by March 2021.
Don Brain, co-founder, chairman and CEO of Freehold Properties, stated: "Revolution's state-of-the-art Delavan facility is among the largest producers of medical cannabis in Illinois. With adult-use recreational sales beginning in January 2020, we believe Illinois's cannabis sector is poised for exponential growth. Revolution's integrated multi-state platform positions them to thrive in Illinois, while the recent addition of Florida and negotiations to expand into other states further diversifies their growth. 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."
Mark de Souza, CEO of Revolution Global, stated: "Revolution is thrilled to be working with Freehold on the next phase of our Delavan expansion. As the Illinois cannabis sector feverishly prepares for adult-use, Revolution sees enormous potential to grow and lead in an exploding industry. With expertise in cannabis and agriculture and an understanding of the unique needs of companies operating in the sector, Freehold is uniquely qualified to partner with Revolution. We are grateful for their support and belief in Revolution and its mission."
