UCASU outlines 2021 strategy for greater investment return in post-pandemic world
UC Asset LP (OTCQX: UCASU) has released a white paper detailing its investment strategy for 2021, following a unique year marked by the COVID-19 pandemic. The management emphasizes a shift from new builds to focusing on existing projects while increasing cash reserves. The firm believes that the pandemic has created disruptive opportunities in the commercial property market, while residential property prices have surged unsustainably. UC Asset's new SHOC strategy aims to reinvent community investment, potentially delivering high returns for investors based on previous project successes.
- Increased cash reserves reported for 2020, providing financial stability.
- SHOC strategy shows promise, with previous projects yielding over 50% annualized returns.
- Commercial properties suffered declines due to the pandemic, impacting overall revenue potential.
ATLANTA, Feb. 23, 2021 /PRNewswire/ -- UC Asset LP (OTCQX: UCASU) releases today a "white paper" prepared by the company's management team, reviewing the firm's investment strategy in 2020 and outlining the 2021 strategy.
"This is the first time we are openly discussing our 2020 strategy," says Greg Bankston, managing partner, UC Asset. "This document discloses how we systematically analyzed the market, why we have decided to scale back on new builds and slowly reduced our inventory. It illustrates how we have managed to increase our cash reserve, and what great opportunities we are preparing for in the coming months."
2020 was a unique year for real estate investors. The world was hit by the COVID pandemic and the economy of the States crippled. Commercial properties performed relatively poorly, and some categories of commercial properties took a big hit, due to the decrease of business and social activities. Meanwhile, residential properties experienced unusual value soaring.
UC Asset management believes the hike in residential property prices was an unexpected and unsustainable result of the pandemic. As early as July 2020, UC Asset management concluded that residents, after a long period of shielding-at-home, developed stronger desires to improve their living space, by either remodeling their existing homes or buying new. This desire of individual consumers led to a dramatic increase in demand for housing purchases, despite a shrunken economy and decreased employment.
A few months later, UC Asset's observation and projection was echoed by industrial leaders such as Redfin, Realtor.com, and Zillow.com. "We are pleased our analysis, made several months earlier in the year were parallel with these industry leaders," boasts Bankston.
Additionally, UC Asset concluded the fast rising of building costs compromised investors' profit in building or renovating homes, despite the rising residential prices. This, ironically, would lead to less supply and tight inventory, and therefore push house price even higher. Based on this observation, in the summer of 2020, UC Asset adopted a forward-looking strategy. "We halted new builds, focused on completing existing projects, and held back sales of our inventory as we projected they could be sold later for better prices," shares Bankston.
This forward-looking strategy helped UC Asset to stay profitable later in 2020, and to build up its cash reserve.
With significant amount of cash in hands, UC Asset is aiming its radar at the dynamics of commercial property market. "COVID-19 pandemic shook up the commercial market. It expediated some long-term changes which people would be less willing to make in a more stable environment. These changes will be disruptive, and even revolutionary. Some properties which suffered a loss during the pandemic will be worth two times, three times or even more in a post-pandemic world. And our job is to identify these properties," says Larry Wu, founder of UC Asset.
Wu says the firm is excited about their new business strategy which is a direct response to market trends that may be more compelling in post-pandemic world. "For one thing, we are avidly pursuing our SHOC strategy. We believe that SHOC is a revolutionary model that will renovate communities and disrupt the conventional hotel business. We have seen great results with a few pilot projects prior to SHOC. One such project achieved over a
The entire White Paper can be viewed here: https://www.ucasset.com/WhitePapers/
About UC Asset:
UC Asset LP is a limited partnership formed for the purpose of investing in real estate for development and redevelopment, 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 | Investor Relations Director, UC Asset LP
cjordan@ucasset.com | 678-499-0297
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SOURCE UC Asset LP
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