Alset to inject first rental home assets into American Home Reit

ALSET International 40V : 40V 0%on Tuesday announced that its 99.99 per cent-owned indirect subsidiary Alset EHome will kick off the seeding process of American Home Reit (AHR) by transferring over 20 single-family rental homes into the real estate investment trust (Reit).

The properties are all currently occupied with long-term leases and owned by Alset EHome, the sponsor of AHR.

AHR targets to acquire residential real estate assets with a capitalisation rate of about 5 per cent on net operating income, and to pay a quarterly dividend of up to 8 per cent annualised yield.

In its statement, Alset said it aims to increase the number of single-family rental assets under the Reit to over a hundred homes by end-2021.

This comes as part of the group's plans to ramp up its efforts in the coming months to build up the asset base of AHR, which it plans to achieve dual listing for in global stock exchanges, particularly in the US and Singapore.

"AHR is an integral part of the entire ecosystem we are building," said Alset EHome's executive chairman, Chan Heng Fai.

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"We are in the process of setting a strong foundation to rapidly scale operations across our entire ecosystem, and with AHR, we have the platform to grow at a much faster pace."

Shares of Alset ended Monday unchanged at 6.3 Singapore cents.

READ MORE: Alset partners Tesla to deliver first 20 eco-friendly homes in Texas