Innovative Industrial Properties (IIPR) announced on August 5, 2025, a strategic investment of up to $270 million in IQHQ, Inc., a private life science real estate platform with over $5 billion in total assets. This marks IIPR's first major expansion outside the cannabis industry, aiming to diversify its business and accelerate growth.
The investment is structured to generate a blended yield exceeding 14% per annum, expected to be highly accretive to Adjusted Funds From Operations (AFFO). It comprises a $100 million commitment to IQHQ's revolving credit facility and up to $170 million in IQHQ preferred stock, which is senior to all common equity. This leverages IIP management's extensive experience in the life science sector.
The transaction is anticipated to close in the third quarter of 2025, subject to customary closing conditions. This strategic pivot positions IIP to capitalize on improving fundamentals in the life science real estate market and includes a valuable 'right of first offer' on future asset sales from IQHQ, potentially adding over 5 million square feet of Class A life science real estate to IIP's pipeline.
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