In 2013, ASSET Chile structured and placed Fondo de Inversión Asset Rentas Residenciales (ARR), the first Chilean Multifamily REIT. Since then the Fund has raised UF 6.5 million of equity, which will translate to more than UF 28 million in assets (US$ 1,050 million). The Fund -through its subsidiaries- acquires and manages residential buildings that are operated as one business unit; rents its apartments to individuals in short term leases, and offers additional services to tenants.
Nowadays, ARR owns and operates -through its subsidiaries- nine properties in Santiago downtown, five of which are operating and four are under construction. Currently, ARR has more than 20 investors, and more than two thirds of them are institutional investors or foundations.
The first UF 300,000 for the Fund were placed in late 2013 among few institutional and private investors. With the available capital, the Fund bought its first three buildings.
Two years later, in 2015, based on its excellent track record operating the first building, ASSET Chile went again to the market and raised, between old and new investors, UF 844,000, which were used to acquire the multifamily platform that the real estate arm of Prudential Financial (PGIM Real Estate) had in Chile, that included two residential buildings in operation as multifamily properties, and two more buildings.
The Fund doubled its size in 2016 by raising UF 1.2 million, aiming to buy another 6-8 buildings during the next 3 years. In 2018, an additional UF 2 million was raised with the goal that ARR have between 20 and 25 buildings by 2023. Finally, in early 2020, a new capital increase of UF 4 million was approved to reach a total of 35 buildings by the 2027-2028, in addition to extending the term of the Fund from 2025 to 2035.