UC Asset Limited Partnership, an Atlanta-based real estate investment firm, announced an all-share agreement to acquire an Oklahoma cannabis growing facility, invest in it, and lease it to its present operator.
According to a news release, the 10,000-square-foot site is operated by Oklahoma medicinal marijuana cultivator Fire Ranch Farm.
UC Asset has announced a $1 million investment in the site to create 5,000 square feet of cultivation area.
“UC Asset anticipates to earn monthly rents representing a 14.4% cash on cash yearly return,” the announcement states.
“The lease is for three years, and the monthly rent will increase by 5% every 24 months after that.”
The deal will be paid for by UC Asset issuing 2.5 million preferred shares to the property’s current owner, who has not been revealed.
The corporation now has approximately 5.5 million shares in circulation.
Each preferred share can be converted to one common share at some point in the future, but the holder will not receive dividends from UC Asset unless the shares are converted.
However, if any preferred shares are converted to common shares, the monthly rent on the property will be increased to generate additional money, according to the firm.
UC Asset announced in January 2022 its plan to acquire an Oklahoma cannabis property, saying it sought to follow a business model similar to cannabis real estate investment trust Power REIT.
