How it works
How investing with Aalaya would work.
Aalaya is developing an investment offering in U.S. rental housing. This page explains what you would buy, where the capital would go, and who would decide. It describes a plan, not a live product.
1. What is being developed
Two things, both intended for launch: five Aalaya REITs, and a managed fund that would invest across all five.
Today the only way to take part is to join the investor waitlist. Nothing is available to buy.
2. What an investor would purchase
Route A is an individual REIT. You would choose one or more of the five and buy shares or units in each.
Investor → shares or units in the chosen Aalaya REITs → property investments selected by Aalaya's team
Route B is the managed multi-REIT fund. You would buy one interest in a fund that invests in all five REITs. Aalaya's management would set the weight of each REIT. Those weights have not been set.
Investor → interest in the fund → all five Aalaya REITs → those REITs' property investments
In both routes you would own the investment interest, not title to a specific building. Your exact rights would depend on the offering documents.
You could combine the routes. If you did, you would be exposed to the same REITs twice: once directly and once through the fund. Five REITs spread exposure across strategies, but they do not remove concentration risk.
3. How capital would be deployed
- Each REIT defines its strategy.
- The REIT raises capital for that strategy.
- Opportunities are analyzed and put through diligence.
- Aalaya's investment team or committee decides.
- The REIT acquires, finances or develops investments over time.
Capital would not be invested the moment it arrives, and there is no portfolio already acquired. You would be committing to a strategy, not to a list of identified properties.
4. What the portfolios could hold
Existing rental properties would lead. Four other activities would support them:
- Interests in property-owning entities and joint ventures
- Real estate debt
- Substantial renovation and redevelopment
- Brownfield and greenfield development
The properties, the REITs and the investors are all intended to be in the United States. No target cities have been chosen.
5. How allocation works
Every REIT would hold all four housing strategies: student housing, LIHTC affordable housing, co-operative housing and market-rate apartments. The five REITs differ in the mix.
Each investment would be counted under one primary strategy, so nothing is counted twice.
The percentages on the home page illustrate a mix of property investments. They leave out cash and other holdings. They are not returns, and they are not the fund's weights across the five REITs, which have not been set.
Aalaya's team could change allocations within each REIT's strategy.
6. What planned AI analysis would cover
- Demand and supply
- Neighborhood, demographic, employment and enrollment trends
- Property fit
- Rent, occupancy, cost and cash-flow assumptions
- Valuation and pricing
- Financing and debt scenarios
- Allocation, concentration and risk scenarios
These are development plans. No model has been validated on live investments. Aalaya's investment team or committee would make every final decision.
7. Who would be responsible
- Sponsor and manager: Aalaya and its affiliated entities.
- Portfolio manager: the appointment of a CFA portfolio manager is in progress.
- Property operations: Cura, the planned property-operations software, and its integration are in development and testing.
- Vendors and property managers: arrangements are under discussion or being contracted.
No names are given here because none of these appointments is complete.
8. How performance could arise
- Net rental income: rent collected, less operating costs.
- Changes in property value, and sales.
- Financing income: income from real estate debt.
What a portfolio earns and what investors receive are different. Distributions are planned quarterly and are not guaranteed.
All three sources vary and none is guaranteed. Property values can fall, rents and occupancy can drop, borrowing adds risk, and development can run late or over budget. You could lose money. Aalaya publishes no return targets.
9. Terms and investor information
Planned minimum initial investment: US$55,555 total, which can be split across individual Aalaya REITs and the multi-REIT fund. Joining the waitlist is free and is not an investment.
The offering is planned for U.S. accredited investors only.
- Fees: planned management fee of 1.25% of net asset value a year, plus a performance fee of 12.5% of total return above a 5% annual hurdle. Whether fees apply at both the fund and the REIT level is still to be decided.
- Distributions: planned quarterly. Not guaranteed.
- Holding period: no fixed term, with a planned one-year minimum hold.
- Leverage: planned borrowing of up to 40% of asset value.
- Redemption: planned quarterly repurchases, limited to 5% of net asset value a quarter, at the manager's discretion. Not guaranteed, and could be limited or suspended.
- Launch timing: to be announced to the waitlist.
These terms are planned. They could change before launch, and the offering documents would govern.
Aalaya plans to share each REIT's strategy and mix, the underlying investments, the roles of AI analysis and the team, responsibilities, fees and financing, performance and distributions, and the offering documents and risks. How often and in what form has not been set.
10. What happens today
You can join the investor waitlist. You get a confirmation that you are registered. Aalaya would notify you by the channel you chose, SMS or email, when offering information becomes available.
Join the investor waitlist.
Registering is free and is not an investment. You get a confirmation, and Aalaya would notify you by SMS or email, whichever you choose, when offering information becomes available.