ATLANTA--(BUSINESS WIRE)--UC Asset (OTCQX: UCASU), a real estate investment and redevelopment company, and Puration, Inc. (OTC: PURA), a lifestyle brand company, announced the execution of a contract for UC Asset to sell Puration a 72-acre farmland parcel located in Farmersville, TX, for a consideration of $1.3 million.
UC Asset, through its wholly owned subsidiary, acquired the farmland at the price of $805,216, in September, 2016. As of June 30, 2020, the total historical cost occurring to UC Asset in holding this property (including commissions, taxes, consulting fees etc.) is approximately $55,000. For this investment of UC Asset, the overall gross rate of return is approximately 55%.
“This property has been a great investment for us in sense that we are now selling it at a reasonable price and can still earn a good return at 55%,” explains Greg Bankston, managing partner of UC Asset’s GP. “The price we paid in 2016 was 4.2% lower than the price this property last transacted in 2007.
“Furthermore, this deal is a direct sale, without involving any real estate brokers or agents. We will not pay any realtors commissions or brokerage fees, which could have accounted for 3% - 6% of the contract amount. This will further improve our profit,” says Greg.
“We are excited to proceed with the Farmersville purchase in conjunction with our new Farmersville Brands strategy,” said Brian Shibley, CEO of Puration. “Farmersville is a short distance north of the Dallas metroplex and an ideal location for our hands-on, lifestyle brand strategy.”
According to the sales contract, PURA will acquire the farmland by paying $100,000 in cash, and another $1.2 million in form of secured note. The note will be pledged using the purchased farmland as collateral. The transaction is set to closed on or before November 02, 2020.
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.
About Puration Inc.
Puration, Inc. previously had been a water purification company that began to explore and develop new business opportunities focusing on the emerging Cannabis Extractions Sector. In July 2015, the Company entered into an agreement to acquire certain health & wellness joint ventures from North American Cannabis Holdings, Inc. resulting in its current product line of CBD infused bottled flavored water products. The Company is focused on growing the distribution and sales of its product line both domestically and internationally. For more information on Puration, visit http://www.purationinc.com.
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