In 2013, ASSET Administradora General de Fondos structured and launched the ASSET Rentas Residenciales (ARR) Investment Fund, the first Multifamily REIT in Chile. Through its subsidiaries, the Fund acquires and manages residential buildings that are operated as a single business unit, leases its apartments under short-term contracts, and offers additional services to its residents. Today, ARR’s subsidiaries own 24 buildings in operation in the city of Santiago, comprising a total of more than 7,000 apartments and 295,000 square meters of leasable space.

The Fund has been approved to raise capital of up to UF 8.3 million, which will translate into approximately 35 buildings or UF 28 million in assets (US$ 1.05 billion). Of that total, subscription commitments for UF 7.2 million have been signed to date. Currently, ARR has more than 20 investors, and about two-thirds of them are institutional investors or foundations.

The Fund’s first UF 300,000 in capital was raised in late 2013, and with this capital, three properties were acquired. Two years later, in 2015, and thanks to its excellent track record operating its first building, ASSET Administradora General de Fondos returned to the capital markets and raised UF 844,000 from both original and new investors. These funds were used to acquire the residential rental portfolio that Prudential Financial’s real estate arm (PGIM Real Estate) held in Chile, which included two buildings already in operation, as well as two other projects.

In 2016, the Fund doubled in size by raising UF 1.2 million, with the goal of purchasing another 6 to 8 buildings over a 3-year period. In 2018, an additional UF 2 million was raised with the goal of having ARR own 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 2027–2028, in addition to extending the term from 2025 to 2035.