A worker smiles as she shows cannabis plants at the Tilray factory in Cantanhede, Portugal April 24, 2019. REUTERS/Rafael Marchante
- Subversive Real Estate Acquisition REIT LP is the newest cannabis-focused real estate investment vehicle in town.
- The fund’s CEO, Richard Acosta, told Business Insider that they raised $225 million over a two-week period in December through a SPAC, or special purpose acquisition vehicle.
- SPACs are an increasingly common strategy used by investors to go after cannabis operators.
- Acosta says they’re looking at all types of deals, from distressed to “well-capitalized” cannabis operators.
Picking the right investment horse to back in the cannabis craze is a difficult proposition, but if there’s one strategy that has stood out in a tough market, it’s real estate.
To that end, Subversive Real Estate Acquisition REIT LP raised $225 million through a public offering in January on Toronto’s NEO Exchange. The fund picked the Canadian market since most cannabis and cannabis-related companies are barred from the major US exchanges.
The money was raised in a two-week period during the December holiday season, a notoriously tough time to raise capital, Richard Acosta, the fund’s CEO, told Business Insider in an interview.
While the company has yet to make its first investments, Acosta says it will skew toward industrial real estate — things like cultivation facilities — and retail assets, like dispensaries.
Published: February 21, 2020