ATLANTA , Dec. 7, 2020 /PRNewswire/ -- UC Asset (OTCQX: UCASU), a real estate investment company, announced the sale of a property at the full price of $1.35 million , one week after the property was listed.
"We are pleased this new listing received multiple offers almost immediately and we were able to finalize the sale within one week," says Greg Bankston , UC Asset's managing partner. The firm acquired the property in 2017 at the price of $355,000 and utilized a construction loan to tear it down and rebuild. The total amount of the outstanding loan, including principal and accumulated interests, is less than $450,000 .
UC Asset restates its projection of a profitable 4th quarter of 2020 after this new sale. The buyer has until December 28 to close the transaction.
"We had a slow start in 2020 due to the COVID-19 pandemic and took a loss in both revenue and book value for the first half of the year, however, our team quickly made adjustments and turned things around. We claimed gross profits on two sales in third quarter and closed our Dallas farmland sale at a significant margin of profit in fourth quarter," Bankston explains.
According to the company's official records, UC Asset acquired the Dallas farmland in 2016 at the price of $805,216 and sold the property in 2020 for $1.3 million . After taking in account additional costs of approximately $50,000 , the gross margin on this sale is approximately 55%.
The new sale will further improve UC Asset's cash position. Right now, the company has approximately $700,000 of cash in hand, and another $700,000 in short term debt instruments. It has another $1.20 million invested into a secured convertible note which will mature within a year. And the new sale will generate a net proceed of more than $1.25 million .
"We intentionally hold on to our cash and cash equivalents because we realize that the real estate market is experiencing a structural change, expedited by the COVID-19 pandemic," states Larry Wu , UC Asset's founding partner, "We see a $60 billion market with this new trend, and we have created a new business model to claim our share on this $60 billion new market. By saving our cash capital in 2020, we favorably position ourselves to pursue this new business model and achieve great profits in the coming years."
About UC Asset LP
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 and Dallas , TX. 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 | +1 678-499-0297
View original content: http://www.prnewswire.com/news-releases/ucasu-newly-listed-property-sold-at-full-price-of-1-35-million-within-one-week-301187503.html
SOURCE UC Asset