reAlpha Asset Management Inc. Secures $100 Million Capital Commitment for Post IPO Funding from GEM Global Yield LLC SCS
reAlpha, an AI-powered real estate technology and investment company with a goal to empower everyone with the ability to invest in the $1.2 trillion global short-term rental (STR) market, today 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.
Per the terms of the agreement, GGY commits 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. reAlpha will remain in control of the timing and, within certain limits, the maximum amount of each individual drawdown under this facility and has no minimum drawdown obligation.
Subject to the public listing occurring, the proceeds from this financing will be used to accelerate reAlpha's investments in experiential and rent-ready vacation homes and for general corporate purposes.
"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 democratize the short-term rental economy," said Giri Devanur, CEO of reAlpha. "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. Over the last two months, reAlpha agreed to a $200 million joint venture with Singapore-based asset management firm SAIML Pte. Limited to acquire rent-ready vacation homes. reAlpha also secured a $200 million financing facility from Churchill Real Estate to fuel acquisition growth and announced a partnership with RARE Treehouse Resorts to jointly develop a first-of-its-kind treehouse resort in the United States.
reAlpha is building a digital real estate investing platform that enables its members to simplify wealth creation opportunities through investments in vacation homes while striving to deliver exceptional guest experiences. reAlpha sources and scores properties from the wholesale market using a proprietary AI-driven algorithm called reAlphaBRAIN. It then predicts the viability of each property for the short-term rental market, as well as the projected long-term value. reAlpha's business plan contemplates eventually allowing investors to buy equity in specific properties, providing opportunities for short-term passive income generation via Airbnb, as well as equity-driven capital appreciation. reAlpha is based in Dublin, Ohio. For more information, please visit www.realpha.com.
Global Emerging Markets ("GEM") is a $3.4 billion, alternative investment group with offices in Paris, New York, and Nassau (Bahamas). GEM manages a diverse set of investment vehicles focused on emerging markets and has completed over 570 transactions in 72 countries. Each investment vehicle has a different degree of operational control, risk-adjusted return, and liquidity profile. The family of funds and investment vehicles provide GEM and its partners with exposure to: Small-Mid Cap Management Buyouts, Private Investments in Public Equities and select venture investments. For more information: https://www.gemny.com.
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