Real Estate Investment Trust Acquires $110 Million in Property
Holland & Knight attorneys represented a real estate investment trust (REIT) in the acquisition and leasing of over $110 million worth of vineyards, wineries and related property throughout California. The groundbreaking business model calls on the REIT to invest in vineyards, wineries and other assets - including crushing, processing and storage facilities - and to simultaneously enter into specialty-finance leases with branded wineries, bulk-wine producers and independent grape-growers as operating lessees. The negotiations involved financing through private offerings of common stock of the REIT, which raised $159.4 million in capital. A credit facility agreement with California's fifth largest bank for up to $250 million was also established, which financed several of the transactions.
Related Practices