IIPR Extends Beyond Cannabis
SAN DIEGO–(BUSINESS WIRE)–Innovative Industrial Properties, Inc. (NYSE: IIPR) (“IIP” or the “Company”), announced today that it entered into agreements to make an investment totaling up to $270 million into IQHQ, Inc. (“IQHQ”), a premier life science real estate platform with over $5 billion in total assets.
The investment (the “Investment,” “Transaction,” or “Investment Transaction”) is comprised of two discrete investments that together are expected to earn a weighted average interest rate of greater than 14% per annum:
“We are excited to announce our first expansion outside of cannabis with this highly accretive transaction that diversifies our business and accelerates IIP’s growth trajectory,” said Alan Gold, Executive Chairman of IIP.
While we remain committed to the cannabis industry, this transaction leverages our team’s deep historical experience in the life science industry, which we believe will benefit IIP shareholders via earnings growth and as participants in the life science secular recovery that I believe is underfoot.
The transaction is structured with key tenets that include strong current income over the life of the investment, paired with future upside opportunities via warrants and the potential to acquire life science real estate facilities directly from IQHQ.
Strategic and Financial Benefits of the Transaction:
The Company expects to fund the RCF with a combination of cash on hand and draws from the Company’s revolving credit facility. The Company expects to fund the Preferred Stock investment with cash on hand, draws from the Company’s revolving credit facility and potential proceeds from future financing activities. The Investment Transaction is expected to close in the third quarter of 2025, subject to the satisfaction of customary closing conditions.
About IQHQ
IQHQ, Inc. is a life science focused real estate company founded in 2019 to meet the growing industry needs through the acquisition, development, redevelopment, leasing and management of life science assets.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties, and, pro forma for this contemplated transaction, life science real estate. Additional information is available at www.innovativeindustrialproperties.com.
Original press release