US: AI-powered real estate technology and investment company, reAlpha, has announced that it has signed an agreement with GEM Global Yield LLC SCS [GGY], a Luxembourg-based private alternative investment group, for a $100 million capital commitment.
As per the terms of the agreement, GGY is committing to providing reAlpha with a share subscription facility of up to $100 million for a 36-month term following the public listing of reAlpha’s shares. The Ohio-based company will remain in control of the timing and, within certain limits, the maximum amount of each individual drawdown under the facility, and has no minimum drawdown obligation.
reAlpha provided no prospective timeline for when it intends to go public via an initial public offering [IPO]. However, if the company does list on the public markets, the proceeds from the financing will be used to accelerate reAlpha’s investments in experiential and rent-ready vacation homes, and for general corporate purposes.
reAlpha CEO Giri Devanur said: “This agreement with GGY reflects their belief in our business, the strength of the asset class we target, and the enormous opportunity tied to helping democratise the short-term rental economy. This certainty of capital upon our public listing better positions us to advance the company’s strategic priorities on its journey to becoming a global leader in the vacation rental space.”
The agreement with GEM represents another strategic step that reAlpha has taken to position the company for long-term growth following the completion of its planned public listing.
Last month, reAlpha agreed to a $200 million joint venture with Singapore-based asset management firm SAIML Pte. Limited to acquire rent-ready vacation homes. Prior to that, the company also secured a $200 million financing facility from Churchill Real Estate to fuel acquisition growth, as well as partnering with RARE Treehouse Resorts to jointly develop a “first-of-its-kind” treehouse resort in the United States.
