Insights & News
WEG Capital and Andes STR close first institutional fund to invest in Short Term Rentals
On July 8, 2022, Forbes Chile published a news item on WEG-Andes Fund I LP, an investment structure that WEG Capital and Andes STR launched during June as Co-General Partners.
WEG Capital and Andes STR announced the closing of its inaugural real estate private equity fund WEG-Andes Fund I, which plans to acquire US$25 million in Single Family homes in its first phase.
The fund is the first of its kind as a vehicle focused exclusively on helping investors gain exposure to a portfolio of short-term rental (STR) properties for which Andes STR provides full service to the investor, sourcing, purchasing and managing the properties.
The fund will focus on buying properties in the Orlando, Florida (USA) area, a location with strong year-round demand and good long-term fundamentals.
“It is incredibly difficult to invest in short-term rental properties on a large scale. We launched Andes STR to use cutting-edge technology to help real estate investors enjoy the attractive returns that short term rentals can deliver. This fund demonstrates that investors want to invest in the asset class and find our complete solution that leverages our technology attractive,” said Sebastian Rivas, CEO and founder of Andes STR.
“Since we began discussions with Andes in Q3 2021, we have been excited about the STR investment opportunity we could bring to our sophisticated and existing client base,” commented Guillermo Arriagada, partner at WEG Capital. “In this period of economic turbulence, our clients have expressed strong interest in these assets that provide inflation protection with great potential for high returns and excellent downside protection.”
Matias Duhart, co-founder and investment manager of Andes STR, commented that WEG “also liked our technology-driven approach, using machine learning to find properties that show potential to outperform the average investment.”
WEG-Andes Fund I is expected to be invested during this year, and remain invested over a total time horizon of five years. Investors in WEG-Andes Fund I include FamilyOffices and financial industry executives from North and South America, as well as the founders of Andes STR and WEG Capital.
DLA Piper LLP served as external advisor to the fund.
Source: Forbes Chile, 2022.