UCASU outlines 2021 strategy for greater investment return in post-pandemic world
24 February 2021 - 2:31AM
InvestorsHub NewsWire
UCASU outlines 2021 strategy for
greater investment return in
post-pandemic world
Atlanta, GA --
February 23, 2021 -- InvestorsHub NewsWire
-- 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
(NASDAQ: RDFN), Realtor.com, and Zillow.com (NASDAQ:
ZG).
"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 50% annualized return on a
single sale. With the innovative SHOC model, we will be able to
deliver better returns for our
investors."
The entire White Paper can be viewed here:
https://www.ucasset.com/WhitePapers/2021%20Management%20White%20Paper.pdf
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
UC Asset Limited Partner... (QB) (USOTC:UCASU)
Historical Stock Chart
From Mar 2024 to Apr 2024
UC Asset Limited Partner... (QB) (USOTC:UCASU)
Historical Stock Chart
From Apr 2023 to Apr 2024