Real estate remains a top-performing asset and in robust demand among institutional investors and high-net-worth investors. This best-in-class asset comprises nearly $300 trillion in global value and continues to climb as demographics fuel international demand. From REITs to capital flows, from private equity strategies and value creation to booming demand for luxury properties, the DailyAlts Real Estate channel covers the top news and insights in the space
Avantis Investors has launched Avantis Real Estate ETF (NYSEARCA: AVRE), an actively managed real estate ETF that provides exposure to real estate securities focused on income derived from real estate investments and structured in a similar way as real estate investment trusts (REITs).
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ETF issuer and investment advisor Hoya Capital Real Estate announced the launch of the Hoya Capital High Dividend Yield ETF, which invests in 100 of the highest dividend-yielding real estate securities in the United States.
The ETFs offer leveraged bets on Canadian REITs, both long and short. Horizons ETF Management Canada Inc launched last week the BetaPro Equal Weight Canadian REIT 2x Daily Bull ETF (TSE: HREU) and the BetaPro Equal Weight Canadian REIT -2x Daily Bear ETF (TSE: HRED), which offer two times (200%) the daily move on a…
HomeLight, a real estate technology platform that makes it easy to buy or sell a home by partnering with the right agent, raised a $100 million Series D capital round and $263 million in debt financing. The equity round valued the proptech at $1.6 billion, was led by existing investor Zeev Ventures and included participation from Group 11, Stereo Capital, Menlo Ventures and Lydia Jett of the SoftBank Vision Fund.
Alternative Investments/Real Estate: As Low Interest Rates Bite, UK Investors Tilt Towards Alternatives
An independent survey of 889 UK investors commissioned by NexGen Cloud found that over 40% are likely to consider alternative investments such as real estate, cryptocurrencies and collectibles in the present low-interest rate environment.
ETFMG, the fund manager specializing in thematic ETFs, has filed with the SEC to launch the ETFMG Housing Market ETF. The proposed ETF straddles the worlds of real estate and technology, or “proptech,” a sector that is garnering intense interest from venture firms, particularly after the pandemic.
Landis, which helps more American renters acquire homes and democratizes homeownership, announced Tuesday its $165 million Series A round led by Sequoia Capital. Also participating were Signia Venture Partners, Will Smith’s Dreamers VC, and Jay-Z’s Roc Nation. Other investors included founders of fintechs Plaid, Cash App, and Ethos. The founders of Instacart, Front, Flatiron Health, and Tango also participated in the funding round.
Utah-based Entrata, the fastest-growing software company in real estate and a provider of property management software to more than 20,000 apartment communities across the United States, announced today (July 7, 2021) its first institutional fundraise of $507 million. This is the startup’s first institutional funding since its founding in 2003.
Janus Henderson Group plc (NYSE: JHG) announced Wednesday the launch of its Janus Henderson U.S. Real Estate ETF (NYSEARCA: JRE) that focuses on real estate opportunities in the U.S. and in Canada. The actively managed fund will target real estate securities driving the future of the sector, which may include cell towers, data centers, gaming REITs, cold storage and more, without bias toward style, property type or market cap.
RET Ventures announced Tuesday the final close of its second fund, RET Ventures Fund II, at $165 million. The fund received “extremely strong” interest and exceeded its initial target of $130 million. The investors in the fund were a group of real estate “strategic” investors focused on real estate technology for rental properties.
A booming housing market plus the digitization spurred by the pandemic have added up to land Sao-Paulo-based real estate marketplace Loft in a happy place. The three-year-old startup grew its business 28X in 2020 compared to the previous year, yet still has money left over from its last Series C raise of $175 million in January 2020. Nevertheless, Loft announced today its raise of $425 million at a whopping $2.2 billion valuation.
SS&C ALPS Advisors have launched an actively managed, semi-transparent ETF that focuses on the U.S. REIT securities market. The ALPS Active REIT ETF (REIT) will trade on the NASDAQ.
The events of 2021 forced us all to reconsider what the “essentials” in our lives are: Health professionals, our family, our health, home, friends, and a good internet connection. The third annual Global Alternatives Outlook by J.P. Morgan Asset Management recommends you add another item to that list of essentials – alternative investments.
According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, home prices surged 7% annually in September, up from a 5.8% annual gain in August. For perspective, this gain is the largest seen since September 2014. Moreover, home prices are now ruling 23% higher than their previous peak in 2006.
Alternative Investments/Real Estate: The Global X Data Center REITs & Digital Infrastructure ETF (VPN)
“The common denominator for game-changing technologies like 5G, the Internet of Things, and artificial intelligence is the physical digital infrastructure that enables the seamless transfer, computation, and storage of data,” says Global X. “With surging demand and physical capacity constraints, data centers and cellular towers are real estate assets that could offer investors the potential for both growth and income generation.”
REEF Technology, which operates North America’s largest parking network, said in a Facebook post on March 28 that it was working to transform its network of 5,000 parking locations into testing sites, delivery hubs for essential goods & services, and much more in the fight against COVID-19. Fast forward to November, and REEF’s business pivot to these “neighborhood hubs” has landed it $700 million in funds.
CrowdProperty, a leading crowdfunder/lender to the U.K. SME property sector, has lent over £100 million to development professionals. The funding had a beneficial impact on the UK economy because it catalyzed an expenditure of over £ 80 million on construction-related labor, materials, and services. Notably, all of the funded projects have been fully repaid, with platform investors earning, on average, 8% per annum.
Speaking to CNBC on Power Lunch, Glenn Kelman, CEO of real estate brokerage Redfin (NASDAQ: RDFN), said he expected the current boom conditions in the housing market to last well into next year. He attributed the high demand to affluent professionals looking for remote homes as well as low interest rates. Also, he thinks some sellers will put their properties on the market only after the presidential election.
LendInvest, a leading property finance platform that offers short-term, development and buy-to-let mortgages to intermediaries, landlords, and developers across the UK reported a record quarter in Q3 for property bridge loan applications. EstateGuru, a crowdfunding marketplace for property-backed loans, reported record loan volumes during August and September.
Banks and mortgage brokers have to grapple with the hundreds of pages of paperwork for every home loan. Apart from being very time consuming, the highly manual process adds heavily to the cost of making the loan. Through its Document AI, Google (NASDAQ: GOOGL) has already started to tackle some of the largest enterprise content problems plaguing the world. Lending DocAI is the first vertically specialized solution within Document AI and it addresses the mortgage industry.
Alternative Investments/Real Estate: Mortgage Rates Set Another Record Low; Real Estate ETFs Could Benefit
The average interest rate for a 30-year fixed-rate mortgage with conforming loan balances of up to $510,400 slipped to 3.01% from 3.05% last week, CNBC reports.
Squarefeet.ai uses artificial intelligence (AI) to optimize the unit pricing of new residential condo or rental projects, ensuring developers obtain the highest potential revenue. Its algorithm-based platform enables property developers and brokers to price properties on a rational basis rather than using “gut-feel” and “experience.”
Cambria Investment Management, which focuses on alternative investments using quantitative asset management techniques, has launched a new real estate fund.
It’s a striking, futuristic residence that commands panoramic views, combines home with a place to work, and is controlled by artificial intelligence having its own data center. Based outside Prague, Chechoslavika, the 5100-square-foot house is done up inside in stark white and has concrete-grey and glass exteriors. Named Villa Sophia, it’s home to a family of four and is purposely low-slung so as not to block the city view for the neighbors.
The NAHB/Wells Fargo National and Regional Housing Market Index (HMI) for single-family homes for the month of September rose from 78 in August to 83 in September. The reading indicates that homebuilder confidence and sentiment is at a record high – the highest in the survey’s 35-year record. It is a reflection of the strong demand for housing, particularly in the suburbs or exurbs.