reAlpha Asset Management Inc. and SAIML Pte. Limited Agree to Form $200 Million Joint Venture to Acquire Short-term Rental Properties

December 2022

We just entered into a $200 Million Joint Venture with SAIML Pte. Limited, a Singapore-based asset management firm, to invest $40.8 million of equity into short-term rental properties. With leverage, the joint venture expects to invest up to $200 million in vacation rental hot spots in states like California, Arizona, Florida and Tennessee.

$200 Million must be our lucky number, remember that $ 200 million financing facility we announced a few weeks ago 😉.

reAlpha and its shareholders (like you) will retain 51% ownership of the assets under management in this new joint venture, and will earn customary fees associated with both asset and property management. We are excited to put our technology and team to work and quickly build a pipeline of properties.

Here’s what Bala Swaminathan, Founder and CEO of SAIML had to say:

In meeting reAlpha and learning about its platform, creative approach to marketing and mission to democratize real estate investments in a better, cheaper and financially inclusive manner, we became convinced the reAlpha’s value proposition is a game changerWe 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.”

But this is potentially just the beginning. Upon mutual agreement, reAlpha and SAIML may expand this partnership with an additional $61.2 million of equity to the joint venture. With debt, this potentially could mean up to half-a-billion dollars in total assets.

So, what does this JV mean for you as a potential shareholder? In addition to our traditional portfolio for everyday investors to become syndicate members, this JV will create a supplemental portfolio of homes; thereby increasing AUM (assets under management) and revenue – factors that determine the company’s future valuation. With this deal, reAlpha and our shareholders will own 51% of up to half-billion in assets under management.

Read the full press release here.

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