Calgary-based Target Capital Inc. on Tuesday announced the launch of Industrial Lifestyle Properties Real Estate Investment Trust (iLP REIT), a self-advised, open-ended real estate investment trust focused on the acquisition, development, ownership and management of specialized cultivation facilities, industrial properties and real estate for the legal cannabis industry.
Target will provide iLP with up to $1 million of capital through an equity commitment and the REIT will use the proceeds to make strategic deposits on property acquisitions and for working capital and general corporate purposes, the company says in a news release.
Prior to, or concurrent with, acquiring its first cannabis property, iLP is expected to become publicly listed.
The new REIT aims to provide non-dilutive capital to the cannabis market through sales-leaseback transactions and plans to secure contracts with tenants and properties under triple-net lease terms.
“iLP’s structure will allow cannabis operators to unlock capital and redeploy it into higher return activities and will provide cannabis investors yield underpinned by a secured cash flow profile,” the company says.
The firm believes there is significant demand for this type of structure within the cannabis industry — both among cannabis operators and cannabis investors.
Leading iLP’s senior management team will be David McGorman as the company’s managing partner. He will be responsible for building the team of of legal, finance and real estate professional to manage iLP’s operations.
McGorman is currently a managing director with Calgary-based Black Spruce Merchant Capital and prior to was president and CEO of Jennings Capital.
Upon receipt of shareholder approval, Target will change its name to CBi2 Capital Corp. Its common shares are listed on the TSX Venture Exchange and the Canadian Securities Exchange under the trading symbol TCI.