UCASU introduced Cannabis property investment

Rhea-AI Summary

UC Asset LP (OTCQX: UCASU) unveiled its Cannabis property investment strategy at the Emerging Growth Conference on Sept. 30, 2021. The company aims to incorporate Cannabis properties, alongside its existing investments in Airbnb and historic properties, into its portfolio. The Cannabis sector has shown strong profitability, exemplified by successful companies like Innovative Industrial Properties. UC Asset plans to re-enter this market due to favorable regulatory changes in Georgia, supported by the addition of former Congressman Kwanza Hall. The firm is also expanding its investment in hemp and medical cannabis.

Positive

• Cannabis properties have proven to be highly profitable, with the sector leading the cannabis market.
• Strategic re-entry into the Cannabis sector aligns with positive demographic and regulatory changes in Georgia.
• UC Asset's consulting partnership with a local Cannabis extraction company indicates a focused expansion strategy.
• Projected IRR of 30-36% for the first Airbnb property over five years highlights growth potential.
• Historic landmark investment may yield a 50-100% return in the next year through an innovative NFT strategy.

Negative

• None.

ATLANTA, Sept. 30, 2021 UC Asset LP (OTCQX: UCASU) introduced its Cannabis property investment strategy yesterday during the Emerging Growth Conference. According to the company presentation, Cannabis properties, combined with the company's current investments in Airbnb-based SHOC properties and historic landmark properties, will be major building blocks in its portfolio over the coming years.

Cannabis properties are among the most profitable properties in the past years. On the stock market, it is the best performing of all sectors of cannabis business. For example, Innovative Industrial Properties (NYSE: IIPR), the first NYSE public company providing real estate capital to the medical-use cannabis industry, and Power REIT (NYSE: PW), a specialized REIT focused on expanding its real estate portfolio of greenhouse properties for food and cannabis cultivation, both have had extraordinary performances. Last month on OTCQX (where UCASU stocks are quoted), Cannabis REIT New Lake Capital Partners (OCTQX: NLCP) closed on its IPO raising $102 million.

"UC Asset invested in Cannabis-related business back in 2016," says Greg Bankston, managing general partner of UC Asset, "but we exited those investments before our IPO in 2018, out of concern of the risks regarding federal regulations. However, recent demographic and political changes in Georgia (where we are based), and in neighboring states, are in favor of deregulation of the cannabis industry. The recent addition of former US Congressman Kwanza Hall to our team enhances our ability in managing risks of regulations. That's why we believe it is a great timing for us to re-enter this sector."

Late last year, UC Asset entered a deal converting its farmland in Dallas, TX to a medical agriculture project. The firm partnered with a local company in Cannabis Extractions Sector, with a product line of CBD infused bottled water products. Now, UC Asset is seeking to expand its investment in hemp and medical-use cannabis properties.

During the Emerging Growth Conference, UC Asset also discussed additional elements of its portfolio, including Airbnb-based SHOC properties and historic landmark properties. UC Asset projected its first Airbnb property will reach 30-36% IRR over a 5-year period; and its pilot historic landmark investment, the Rufus Rose House in the heart of downtown Atlanta, may produce an extra 50% to 100% return in the next 12 months, if its NFT (non-fungible token) based strategy works according to plan.

"Overall, we are an innovative company, aiming to build the most innovative portfolio in real estate investment," says Larry Wu, founder of UC Asset. "The world is changing. Economic and financial situations are changing, and new technologies are redefining how people live, work and travel and therefore redefining the concept of property. Whoever can monetize on these new trends will become the next market-leader of real estate investments. And we are inspired to become such a leader."

Full script of UC Asset's presentation can be downloaded from its official website: www.ucasset.com.

About UC Asset LP

UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, concentrating in metropolitan areas of Atlanta, GA. For more information about UC Asset, please visit: www.ucasset.com

Disclaimer: 

This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

For More Information Contact:
Christal Jordan | Executive Director, UC Asset LP
cjordan@ucasset.com  | 678-499-0297

 

 

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SOURCE UC Asset LP

FAQ

What is UC Asset's new investment strategy?

UC Asset LP is focusing on Cannabis property investments, alongside Airbnb and historic properties, as part of its new strategy announced on Sept. 30, 2021.

How profitable are Cannabis properties according to UC Asset?

Cannabis properties are among the most profitable sectors in the real estate market, with various successful companies demonstrating strong performance.

What regulatory changes influenced UC Asset's decision to re-enter the Cannabis market?

Recent demographic and political changes in Georgia favor deregulation of the cannabis industry, influencing UC Asset's decision.

Who joined UC Asset to help manage regulatory risks?

Former US Congressman Kwanza Hall has joined UC Asset to enhance its ability to manage risks related to cannabis regulations.

What are UC Asset's expected returns from its investments?

UC Asset projects a 30-36% internal rate of return (IRR) for its first Airbnb property and 50-100% return for its historic landmark investment over the next year.