Benzinga | May 17, 2021 01:58PM EDT

Cannabis REIT IIP To Raise $200M Via 5-Year Debt Offering

Cannabis REIT Innovative Industrial Properties, Inc. (NYSE:IIPR) is poised to raise up to $200 million through a private placement of its senior notes.

The San Diego-based cannabis company said Monday that IIP Operating Partnership, its operating partnership, launched a $200 million offering of senior notes due 2026.

The initial purchasers will be granted a 30-day option to buy up to an additional $30 million aggregate principal amount of the notes.

IIP Operating Partnership plans to utilize the raised proceeds to invest in industrial real estate assets within the cannabis industry, as well as for general corporate purposes.

The move follows IIP's recent announcement regarding the purchase of a Pittsburgh, Pennsylvania-based warehouse.

Cannabis company Parallel disclosed last Friday that IIP's affiliate bought its Pittsburgh, Pennsylvania-based warehouse for approximately $68 million.

The $68 million acquisition was followed by the inking of a long-term lease agreement.

IIP recently revealed a significant yearly increase in revenue, which amounted to $42.9 million in the first quarter of 2021.

To date, the company acquired two properties each in California and Michigan, and one property each in Florida, New York, Texas, and Pennsylvania, while its total investment in properties amounts to $195.07 million.

Photo by Ryan Lange on Unsplash