Cann Group has signed a heads of agreement with Australia Pacific Airports Melbourne (APAM), securing a site at Melbourne Airport for Cann’s proposed stage-three medicinal cannabis cultivation and ‘good manufacturing practice’ facility.
Under the lease arrangement, it is proposed that APAM will fund and undertake primary building of the 37,000sqm facility, representing a multi-million-dollar contribution to the project. The facility is being designed by Aurora Larssen Projects (ALPS), a specialist greenhouse engineering consultancy providing technical consulting to the greenhouse industry worldwide.
On completion of the construction, Cann, with the support of ALPS, will be required to complete the fit-out and technology deployment required at the facility. While specific details are subject to final design, it is estimated the investment by Cann in the project will represent a total capital expenditure of about $100 million, employing 170 staff.
Cann Group CEO Peter Crock says the support of APAM puts Cann in a strong position as it embarks on its stage-three expansion.
“APAM’s contribution to the construction of these facilities will enable Cann to invest additional capital in increased cultivation capacity and expanded development and production capabilities, while also allowing for further future expansion,” he said.
“As per our ongoing strategy, the facility provides Cann with the necessary scale to compete on the global stage in the medicinal cannabis sector.”
APAM Chief of Property Linc Horton said: “Cann’s 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’s technology industry to the rest of the world.”
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 heads of agreement is subject to the approval of the APAC board and the execution of additional documentation by the parties.