ATLANTA–(BUSINESS WIRE)–#Adidas–On April 20, 2020, UC Asset LP improved its cash position, closing transactions liquidating two properties to cash buyers, at prices substantially lower than their current book value. The Partnership made this decision based on management’s best-effort projection of the real estate market in the US generally and Atlanta specifically, under the impact of the COVID-19 pandemic.
“We believe the real estate market will experience a downturn in the next 12 to 18 months, due to the COVID-19 pandemic, and we’d like to move ahead of the curve,” said Greg Bankston, managing partner of UC Asset’s GP. “As a matter of fact, we have suffered a drought of sales, after three under-contract buyers rescinded their agreements citing impacts due to the pandemic. At the beginning of the year, we projected having around two million in cash, and conducted business based on that projection. After those buyers left their contract, our cash reserve dropped, and we had other promising investments and opportunities that we needed cash to capitalize on. It is in the best interest of the company and our shareholders that we liquidate those properties now rather than later.”
“It’s all about moving ahead of the curve in a market that will probably head for a difficult time,” said Larry Wu, founder of UC Asset. “I may be wrong, but if I am right — and we believe we are right – we will be in a much better position than many of our competitors will be, in the next 12 to 18 months when the market may take a harder hit.”
Management is confident that UC Asset will have an adequate amount of cash reserve, after it pays off all short-term debts, to conduct business as usual and capitalize on a number of promising opportunities, already identified, for another 12 months.
“We plan to raise more capital through private offerings or perhaps a secondary public offering in the next 6 to 9 months,” said Larry Wu. “We want to have as much capital in our hands as possible, so we are able to capitalize on opportunities and purchase undervalued properties, when the market will probably see less buying power other than us.”
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
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.
Christal Jordan | Investor Relations Director, UC Asset LP
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