If you’ve got deep pockets and want to start growing cannabis at scale, a newly listed property on British Columbia’s Denman Island might be just what you’re looking for.
Colliers International Group Inc (TSE: CIGI) is looking to sell the property and its cultivation complex for a substantial sum of C$2,495,000. The five-acre piece of real estate comes with a three-bedroom home, thereby enabling the buyer to give their pot plants the attention they deserve.
“Situated on a very private 5+ acres on Denman Island, this property provides an exceptional opportunity for an owner/operator to enter the cannabis industry with a cultivation and processing facility of approximately 9,300 square feet,” the Unique Properties posting specified.
Colliers says Health Canada approved the facility after it was built in 2019. But, because cultivation never commenced at the site new owners would still need to obtain a license.
“With over 4,500 square feet of cultivation area alone, this facility could also be utilized for a range of other agricultural or food processing uses,” the real estate company says.
As of 2021, Denman Island had a population of 1,391 people.
Like many small communities in the province, the island is known for having a vibrant arts scene. The Denman Island Arts Centre serves as a community hub for artistic residents, hipsters and others.
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BC campaign highlights grim reality for growers
Although the idea of making piles of cash from growing marijuana on an island may sound appealing, turning a profit in this highly competitive industry isn’t easy.
A campaign recently launched by the BC Cannabis Alliance aims to educate people about how much growers actually make.
According to the organization, which is comprised of about 24 cultivators and bud processors, those who grow the plants in this province only make about C$15 for every C$82 the customer spends.
“As one example, for every C$10 spent on cannabis in the legal market, only around one to two dollars ever makes it to the grower, and often only months after having ‘sold’ it,” the BC Cannabis Alliance said in a statement about its new campaign on Wednesday.
The taxes that Canadian operators are burdened with are cumbersome to say the least. This is one of the foremost problems in the country’s industry. About 67 per cent of the nation’s licensed producers are struggling to turn a profit.
“If you talk to anybody in the consumer packaged goods business and you tell them that you are in an industry where you’re selling goods at a taxation rate of over 30 per cent they will look at you gobsmacked and say, how do you make money?” Cannabis Council of Canada President, Paul McCarthy, described in a recent interview with Mugglehead.
rowan@mugglehead.com
