As a security token, GroEstate offers a blockchain-based investment opportunity, allowing investors to participate in this high-growth sector while benefiting from the transparency, liquidity, and security provided by digital asset technology. The cannabis real estate investment strategy capitalizes on the growing cannabis market by addressing the industry’s unique challenges, particularly the difficulty in acquiring or leasing properties due to federal prohibition in the U.S. This asset focuses on acquiring distressed warehouse properties, converting them to meet cannabis growing requirements, and securing long-term tenants. Investors benefit from a combination of cash flows and property appreciation, with expected annual returns of 8%-10%.
Our strategy focuses on acquiring warehouse properties specifically for cannabis growing operations. We target both existing cannabis grows and warehouses that can be easily converted to meet industry standards. By securing long-term leases of 10+ years with fixed pricing, we ensure stable and predictable returns. The income generated comes from both rents, property appreciation, and sales royalties, with expected annual returns ranging from 18% to 22%. Token holders can expect quarterly cash flow returns in TSC from rental income. Annual rent-based returns are projected to be between 6% and 8%. Additionally, property appreciation is expected to grow at 8% to 12% annually. Percentage of sales is equivalent to 5 cents USD for each gram sold. The complex has the potential of 8 million grams per year. Holders will also benefit from distributions from property liquidations that are not reinvested into other GroEstate properties, providing further liquidity and value to investors.
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The North American cannabis industry faces significant challenges due to U.S. federal prohibition, which restricts access to banking services and real estate for cannabis companies. This results in companies paying above-market rates for leases, limiting their profitability. However, the global cannabis market presents immense growth potential, with projections to grow from $17.5 billion in 2019 to $73.6 billion by 2027, at a compound annual growth rate (CAGR) of 18.1%. North America, especially California, remains the dominant market, offering substantial investment opportunities in cannabis real estate.
Our focus is on acquiring distressed warehouses and existing cannabis grow facilities that can be upgraded to meet the specific requirements of the cannabis industry, including high standards for security and electricity. These properties offer significant potential for both growth and value creation in an expanding market.
The first asset in our portfolio is located in Alberta, Canada, with an investment of CAD $30 million. The lease terms include CAD $100,000 in monthly rent and a 4% sales royalty, resulting in expected total monthly payments exceeding CAD $120,000. This facility offers strong cash flow and a solid foundation for future growth.
We are currently negotiating additional properties with similar profiles, poised to expand our portfolio and further capitalize on the growing demand within the cannabis industry.
Participation in T7X and GroEstate may be subject to legal restrictions based on your location. It is your responsibility to review and comply with the laws and regulations of your country. T7X and GroEstate are not liable for any legal violations resulting from your participation. For further assistance or information, please consult your local laws or contact our Support team.
Hyperlink citation for CAGR: https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market
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