UCASU has signed a Letter of Intent with an Oklahoma cannabis property owner and licensed medical cannabis grower to acquire its property, including all on-ground structures, for a consideration of $2.2 million.
The property is a 4-acre medical cannabis indoor/outdoor property. According to the seller, operation from this property generated a gross annual revenue of about $900,000. UC Asset plans to lease the property back to licensed growers.
"There are only a few real estate investment companies on the public market with significant cannabis properties in their portfolio. Some of these portfolios appear to be very successful despite their short history. Therefore, we've decided to adopt this investment model," says Greg Bankston, managing general partner of UC Asset.
This is the first LOI signed since UC Asset announced its plan to invest in cannabis property investments two months ago. Last month, UC Asset declared that it has developed a deal pipeline for cannabis property investments. The management confirms that it may sign more LOIs for potential deals in the coming weeks.
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