Cann Group has reached the agreement with Australia Pacific Airports (Melbourne) (APAM). Under the lease arrangement, the plan is for APAM will fund and undertake the primary build of the 37,000m2 facility, representing a multi-million-dollar contribution to the project.
The project is being designed by Aurora Larssen Projects, a specialist greenhouse engineering consultancy.
Upon completion of the construction, Cann 鈥� with the support of Aurora Larssen Projects 鈥� will be required to complete the fit-out and install the technology required at the facility. It is estimated that the investment by Cann in the project will represent a total capital expenditure of approximately AU$100m (拢56m).
The 5ha site allows for a substantially larger facility than previously proposed by Cann. It is part of 2,500 hectares of land available within the Melbourne Airport precinct.
Cann Group CEO Peter Crock said the support of APAM puts Cann in a strong position as it embarks upon its expansion. 鈥淭his site is ideally suited to our needs and the heads of agreement represents an important step that allows us to proceed with final design,鈥� he said. 鈥淎PAM鈥檚 contribution to the construction of these facilities will enable Cann to invest additional capital in increased cultivation capacity; expanded development and production capabilities, while also allowing for further future expansion.鈥�
APAM鈥檚 chief of property Linc Horton said: 鈥淐ann鈥檚 decision to locate its new facilities within the Melbourne Airport precinct is consistent with our strategy to attract high quality tenants that not only contribute to the long-term objectives of the business, but seek to connect Victoria鈥檚 technology industry to the rest of the world.鈥�
Under the lease agreement Cann is permitted to operate cultivation, manufacturing, warehousing and distribution of medicinal cannabis, remaining responsible for all necessary government approvals required. The agreement is subject to the approval of the board of APAC and the execution of additional documentation by the parties.
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