UCG applies decades long expertise, takes an active hands-on approach and focuses on the needs of the student housing crisis. In California the problem is evident with each public university on average needing to add no lees then 10,000 more beds for students and grad students within ten years. Regions outside Silicon Valley that are rich in innovation, yet are under served by Venture Capital.
We identify under valued property as some of the less impacted schools happen to be located in rural areas. UC Davis, UC Santa Cruz, and UC Merced are three examples of universities where our strategy works. We acquire land first in partnership with the land owner, i.e. farmer, (As the majority of the best parcels within a usable distance to the universities are agricultural) through an agreement for zero dollars out of the fund.
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| Standard Farming |
We will approach the farmers, by using representatives from within the industry. As acquiring farm land is quite difficult and these farmers are approached constantly by developers interested in acquiring their property. In return we will allocate at least one acre of the land to vertical farming which will provide a crop yield that will harvest 10 times a year and up to 10 rows high, versus 2 to 3 crops per year in the same area. In addition this allows the farmers to venture into the most modern and most productive type of farming, with no out of pocket expense up front. (This is our inroad into the vertical farming business as it becomes a symbiotic relationship to building our student housing.)
In essence the replacement crop is potentially up to 99 times greater at the extreme. This efficient indoor space is paid for through a national program called PACE (Power and Clean Energy). Which stipulate that all money spent must be for power or clean energy sources and is repaid over the course of 50 years as a melarouse tax assessment and with the opportunity to create significant value, with a focus on near-term returns. Our strategy is to target land owners who want to remain in farming and would not typically sell to any other developer. Our cargo container strategy works well as the foundation for vertical farming due to low cost and high strength. Additionally these structures will use 100% led lighting which is powered via solar power attached to its roof. Thus keeping their cost of operation low to almost zero, as far as energy use.
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| California Universities |
Each UCG deal must have embedded value, seasoned management teams, market-ready products or solutions with protectable intellectual property strategy and a sound go-to-market strategy for our exit. Most of the exits we will seek, especially at first, will be for shovel ready projects that include financing for qualified investors. We use a methodology that assesses the team, technology and perceived market timing as well as the opportunities for market traction and exit strategy. While not limited to investments in any specific geography or sector, UCG expects to source most of its projects from California and other regions of the U.S. in the student housing market that are under serving students with a lack of available affordable housing options. Led by alternative investors such as Venture Capital and Private Equity. This enables us to find opportunities that may be overlooked by Investment Silicon Valley Venture Firms as well as to avoid valuation run up in common with overly competitive deals.
The Fund also identifies well located commercial properties that require renovation or rehabilitation in their tenancy, physical attributes, capital structures, market position and/or management structure. That show a undervalued potential profitability.
By exploiting real estate pricing & operating inefficiencies and employing intensive asset management, the Fund repositions holdings for subsequent disposition. UCG Implements a broad investment strategy that allows the fund to source and execute unique transactions, including direct investments, debt investments secured by real estate, privately placed real estate securities and joint ventures, etc. Also the Fund’s ability to quickly source, evaluate and execute complex transactions is a competitive advantage. As we develop creative solutions to complex situations involving under-performing assets for the purpose of investing at favorable valuations.
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| Additional Portfolio Strategies |