Alset transfers 30 occupied rental homes to American Home REIT

U.S. one-dollar currency notes; taken September 2018.U.S. one dollar bills.

Alset International has completed “seeding” its indirect subsidiary, American Home REIT (AHR), with its first 30 occupied rental homes from Alset EHome, the Singapore-listed company said in a filing to SGX Thursday.

The company said AHR is planned as an owner and manager of Class-A income-producing, high-yielding U.S. real estate, with a focus on large, gated single-family home (SFH) communities.

AHR is targeted to acquire assets with a capitalization rate of around 5 percent on net operating income and to pay a quarterly dividend of up to 6 percent annualised yield, Alset said. In July, Alset had said the quarterly dividend was expected at an up to 8 percent annualised yield.

The current pipeline of SFH properties is in Alset’s master planned community Alset at Black Oak in Magnolia, Texas, U.S., and other communities, such as Northpark Woods in Porter, Texas, the filing said.

“Plans are already in place to increase the number of SFH homes under the group to more than one hundred (100) homes by the end of 2021,” Alset said.

Chan Heng Fai, executive chairman, executive director and CEO of Alset, said AHR was “well on its way” to generating steady recurring income to fuel the company’s growth plans.

“Looking ahead, we hope to develop close to 5,000 intelligently designed sustainable energy homes over the next three to five years. With AHR, it provides the group with a platform to free up capital to scale our portfolio of residential real estate assets at an expedited pace, whilst continuing to enjoy an attractive yield,” Chan said in the statement.

According to a filing to the U.S. SEC in 2013, American Home REIT sold around US$7.70 million in equity.

The REIT is managed by AHR Asset Management, which is wholly owned by Liquid Value Asset Management (LVAM), which in turn is an indirect subsidiary of Alset EHome, according to American Home REIT’s website.

Alset EHome is a 99.99 percent owned subsidiary of Alset International.

Alset International is involved in land development, home building and property management.