UCASU announces leadership appointment and $1 million initial capital for Airbnb-based SHOC investment
ATLANTA, Dec. 29, 2020 /PRNewswire/ — UC Asset (UCASU), an Atlanta-based global real estate investment firm, announced the company has invested initial capital of approximately $1 million into SHOC Holdings LLC, and appointed Greg Bankston, who currently serves as a managing member of UCASU’s general partner, as CEO of SHOC. The company believes Bankston’s twenty-year real estate background and knowledge of the city’s history make him the ideal candidate.
SHOC, a wholly-owned investee of UCASU, will acquire and develop properties under UCASU’s Airbnb-based innovative property investment strategy. The new strategy will focus on home office technology for traveling professionals. SHOC aims to capitalize on a new industrial trend, i.e., the switch of business travelers from conventional business hotel to shared accommodation via platforms such as Airnbnb and Vrbo. UCASU’s management projects a $60 billion market in the coming years for this new trend.
“It is a revolution happening across the board,” shares Larry Wu, founding partner of UC Asset, “Just like conventional taxi businesses are being taken over by shared-ride companies like Uber and Lyft, we believe conventional hotels will be taken over by technology driven shared-accommodation spaces.”
Shared accommodation properties have attracted investors in the past year, but Wu claims there are no institutional investors who specialize in shared accommodation properties equipped with home-office facilities, which will be almost exclusively marketed to business travelers.
“Shared accommodations have replaced a fair share of vocational resorts. But conventional hotels who serve business travelers have held their grounds,” explains Wu. “Before COVID-19, conventional hotels in central business districts or around airport hubs were still doing extremely well. Occupancy rate of these hotels stayed about 80% even 90% in major metros like Atlanta.”
But COVID-19 has expedited a transition in work habits and many people will permanently spend more time in home office spaces. This trend, according to the UCASU, will prompt travelers to choose home-office style shared-accommodations over conventional hotels.
Recently, UCASU retained a top-tier research firm to conduct market survey, and the results seemingly confirmed UCASU’s belief that business travelers will use more shared-accommodations, if those share-accommodations are equipped with home office facilities. UCASU claims that its management team is “beyond excited” at this first round of research data.
UCASU, through its other investees, has made successful investments into home renovations. It believes the new strategy, brand-named SHOC (Share-Home Office Community) will add cash income to profit from house renovation, and possibly improve the total ROI to a level remarkably higher than market average.
“While we will retain our other investments, we are very committed to this new investment strategy because of its brilliant prospect,” says Wu. “The initial $1 million will allow us to test this new strategy on a practical scale. Meanwhile we will explore all options to expand on this new strategy. Our goal is to form a $10 million portfolio of shared home office properties over the next 12 months.”
About UC Asset:
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
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Christal Jordan | Investor Relations Director, UC Asset LP
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SOURCE UC Asset (UCASU)