ATLANTA – UC Asset LP (OTCQX: UCASU) introduced its Cannabis property investment strategy 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.”
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(This information is primarily sourced from UC Asset LP. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).