Tenant banks on cannabis law change
Biotechnology company Helius Therapeutics says it has leased the country’s first commercial facility to produce cannabis for medicinal purposes.
Rich Lister Guy Haddleton reportedly invested $15 million in the company.
Helius has leased an 8800-square-metre property in East Tamaki, Auckland, as the site for its new medicinal cannabis cultivation, extraction, research and manufacturing operations.
Helius co-founder J P Schmidt is banking on medicinal cannabis use becoming legal by mid-2020. He said the facility would set the standard for medicinal cannabis production in New Zealand.
The site covers 6500sqm of warehouse space for cultivation and about 2000sqm of office and laboratories.
The agreement also allows for expansion, with an additional 6500sqm next door.
Using stacking technology, it will give Helius about 20,000sqm of cultivation space, capable of growing 140,000 plants and producing 50 tonnes of material per year.
Schmidt said the company required a secure indoor facility that would stand up to the rigours of certification yet still provide close proximity to law enforcement, transport and distribution networks.
Helius was cultivating cannabis initially for research and, ultimately, to produce therapeutics.
The site allowed for precision indoor cultivation and control over the growing environment for medical-grade cannabis.
CBRE’s national director of industrial and logistics, Claus Brewer, said places such as Colorado and California had shown the effect of legal cannabis and manufacturing plants on the industrial property market.
‘‘Whether it’s plant-based meat or more generic growing or processing facilities, essentially the repurposing of industrial stock with low-stud height or excess office space to indoor horticulture space could be the future of farming in urban environments, providing further opportunities for savvy landlords.’’
The change of use allowed investors to achieve rental returns comparable to newer builds. It also allowed the occupier to be able to achieve greater economic benefits from an older-style facility.