The Watch
LATITUDE
CANNABIS INDUSTRY FIRES UP COMMERCIAL REAL ESTATE
As the legalization of cannabis becomes official in Canada, businesses across the country are scrambling to snag commercial real estate for their operations. This is
especially true in Alberta, where the race for space is reportedly creating
bidding wars and some cannabis businesses are partnering with other types of retailers. Examples of this include National Access Cannabis Corp., which has signed an agreement with Second Cup to convert some of its coffee shops, and Aurora Cannabis Inc., which recently
THAT CANNABIS-DO ATTITUDE Thanks to national legalization, clandestine marijuana grow-ops in basements may well be on their way out. Alberta has proven to be particularly fertile ground for booming and sometimes very big cannabis businesses.
purchased a stake in the company that owns Wine and Beyond, and Liquor Depot. Alberta is particularly well positioned to lead Canada’s new cannabis industry, and not just because we get a lot of sunny days. Many sellers are setting up shop here because the province has chosen a private model for cannabis retail. Ontario and Quebec are examples of the other approach, which has their provincial governments regulating cannabis sales like they do liquor. Another plus for Alberta, from the retail perspective: Alberta is not capping the number of applications for cannabis retailing licences. Edmonton-headquartered Aurora Cannabis is one of the country’s biggest and fastest-growing marijuana companies. In recent months, the company has invested in not only liquor stores but also an organic waste technology company. It’s also been
buying up cannabis producers, like CanniMed Therapeutics Inc., for $1.1 billion, and MedReleaf Corp., for $3.2 billion, the industry’s largest takeover so far. Aurora is scrambling to finish construction of an 800,000-square-foot medical marijuana growing facility near the Edmonton International Airport. Aurora Sky, the company says, will be the largest greenhouse of its kind and will produce 100,000 kilograms of cannabis each year. Aurora Cannabis also operates a 55,000-square-foot facility in Cremona (about 80 kilometres northwest of Calgary) and two others in Quebec. And it’s acquired land for an even bigger facility near Medicine Hat—at 1.2 million square feet, Aurora Sun will lead the company’s space race, having upped the size by 50 per cent.
SUMMER 2018 PEG | 59
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