AUSTIN, Texas–(BUSINESS WIRE)–Andes STR and Capital WEG announced the closing of WEG-Andes Fund I, its first real estate private equity fund. With leverage, the fund plans to acquire $25 million in single-family properties starting this month.
The fund is the first of its kind as a vehicle to help investors gain exposure to a portfolio of short-term rental (STR) real estate properties for which Andes STR provides comprehensive turnkey services for research, marketing and property management. The fund will focus on buying properties in the Orlando, Florida area, a location with strong year-round demand and long-term fundamentals.
“It is incredibly difficult to invest at scale in Airbnb-style short-term rental real estate, so we launched Andes STR to leverage cutting-edge technology to help real estate investors take advantage of the attractive returns expectations that short-term rentals can offer. This fund demonstrates that investors want to invest in the asset class and find our turnkey solution, which leverages our award-winning, compelling technology,” said Sebastian Rivas, CEO and Founder of Andes STR.
“Since the start of discussions with Andes in the third quarter of 2021, we have been excited about the STR investment opportunity that we could offer to our existing and sophisticated clientele,” commented Guillermo Arriagada, Partner at WEG Capital. “We couldn’t be happier with Andes STR’s cutting-edge technology, risk-adjusted return profile and ambitious and talented management team. During these turbulent economic times, our clients have shown strong interest in these assets which offer an inflation hedge with attractive upside and strong downside protection.
Matias Duhart, Co-Founder and Chief Investment Officer of Andes STR, said: “We are delighted to partner with WEG on our first institutional fund and look forward to working with them in the future. The WEG partnership was natural, given our mutual relationships and our ability to connect sophisticated international investors with short-term rental properties. They also loved our technology-driven approach, which uses machine learning to find properties that have the potential to outperform the average investment. »
The WEG-Andes Fund I is expected to roll out over the next year, with an expected investment time horizon of five years. Investors in WEG-Andes Fund I include sophisticated family offices and industry executives from North and South America, as well as Andes founders STR and WEG Capital Partners.
DLA Piper LLP acted as outside legal counsel to the fund.
This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to invest in any interest in WEG-Andes Fund I or any other fund related to STR, nor shall there be any sale of such interest in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of such jurisdiction. Any such offer, solicitation or investment has been or will be structured to comply with applicable securities laws.
About Andes STR
Andes STR is an award-winning property management technology company backed by some of America’s largest and most prominent venture capital firms. Andes is led by a world-class team whose mission is to disrupt the real estate investment world by transforming short-term rentals into an easily investable and widely available asset class. The company uses proprietary technology to provide investors with turnkey, return-driven, short-term rental investments. Andes was founded in 2021 and is headquartered in Austin, TX. The team has experience investing and managing short-term rental portfolios since 2018 in the United States, Canada and Chile. For more information, please visit https://andstr.com/.
About WEG Capital
WEG Capital is a global investment firm based in Santiago, Chile, which provides financial services, corporate finance advisory services and asset management. The founding partners have over 20 years of experience in corporate finance, business strategy, alternative asset investment advice and private debt structuring. WEG Capital invests responsibly on behalf of institutions and individuals with the aim of preserving capital, delivering attractive returns and generating positive community impact. For more information, please visit https://wegcapital.cl/
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