US: Ohio-based short term rental investor reAlpha has formed a joint venture with Singapore-based SAIML Pte. Limited to acquire short term rental homes across the United States.
The JV with SAIML will invest $40.8 million of equity in rent-ready STR properties, leveraging reAlpha’s proprietary algorithm reAlphaBRAIN to identify the assets which have the best potential to deliver a return on investment.
Specific target markets include California, Arizona, Florida and Tennessee. reAlpha Asset Management will have a 51 per cent stake ini the JV and will oversee is day-to-day operations. Subject to approval, a SAIML nominee will join the board of reAlpha.
Giri Devanur, CEO of reAlpha, said: “We are excited to partner with SAIML to advance our growth strategy. SAIML is a sophisticated investor who understands the power of our differentiated platform and shares our strong conviction for the STR asset class. This partnership, together with our recently secured $200 million financing facility from Churchill Real Estate, demonstrates the quality of the opportunities we have sourced and will fuel our investment activity in the year ahead.”
Bala Swaminathan, founder and CEO of SAIML, added: “In meeting reAlpha and learning about its platform, creative approach to marketing and mission to democratise real estate investments in a better, cheaper and financially inclusive manner, we became convinced the company’s value proposition is a game changer. We strongly believe that reAlpha has the opportunity to become a global leader in the vacation rental space, and look forward to contributing to its growth.”
Upon mutual agreement, reAlpha Asset Management Inc. and SAIML can expand its partnership by contributing an additional $61.2 million of equity to the joint venture. This, together with additional debt financing, will enable the JV to invest up to $500 million in STR properties.