VRMA Administrator
Eighteen-month-old short-term rental company Wander has raised a $100 million debt facility from Credit Suisse to expedite procurement of more homes for its portfolio, aiming to have a Wander property within a three-hour drive for 80% percent of the U.S. population. This follows the establishment of Atlas, Wander's new captive real estate investment trust, which gained millions of dollars in investment interest within the first 48 hours of its announcement a month ago. Properties within the short-term rental portfolio go to Atlas once they are ready for paying guests. The model incorporates an agreement that Wander can operate and maintain the properties even if they are under the Atlas banner, with profits being distributed to investors monthly or after profits emerge from the sale of a property. “Having that grace period, especially as the fund is so new, is really important because one bad asset can really affect returns,” said Wander CEO John Andrew Entwistle. “Down the line when Atlas' own portfolio is hundreds of homes then it will be able to go and purchase homes directly. But until that happens we think segregating them is the right call.”
Forbes (11/30/22) Amy Rose Dobson
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