FynsaUpper’s Bet on Residential Assets in Texas

Faced with an increase in demand from Latin American investors for assets real estate, the AGF of Fun and alternative investment firm Uppergrowth established an alliance that gave rise to the platform FynsaUpper, whose main bet is a residential rental fund in Texas, USA, which has assets of US$20 million.

The investment fund “Fynsa Upper Residencial US I” maintains a focus on residential rental assets value add in the United States and is aimed at the general public with a ticket entrance fee of $ 10 thousand.

Currently, has a portfolio of over 1,100 units, which involved an investment of close to US$100 million in the city of Houstonthe most populous city in the state of Texas.

conversion

Now, your new business opportunities are sitting on two assets: the conversion of the former Tri-County Mall into a residential, commercial and civic hub in Cincinnati for US$1,000 million, and the conversion of the Renaissance Tower, the second tallest tower in downtown Dallas, for US$113 million.

Likewise, are in the process of fundraising to acquire the Myra Park building, located on the Farmers Branch north of Dallasand which corresponds to a building with 250 residential rental units.

Regarding the first asset, the real estate manager of Fynsa, Pablo Massera, states that the city sees this investment with good eyes, since “instead of having a white elephant stopped by the backward trend of the malls, it sees that a neuralgic area it springs back to life and puts the right incentives in place for developers to come to fruition.”

Explain that they have focused on assets value add due to its profitability, considering that it is bought at a certain price, and an added value is generated through repositioning or remodeling, to later relocate it in the market at a higher value.

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View of Dallas, north of the state of Texas, United States.

The lure of Texas

In the last year, several Chilean AGFs have launched products real estate focused on the United States. And while most lean towards assets in Miami, from FynsaUpper they point out that they saw an opportunity in Texas.

“Most Latin Americans think of Florida and Miami in the United States, but there are states that have tremendously powerful economic dynamics. Texas is the eighth economy in the world if you consider it as a country, with 30 million people”indicates the partner of Fynsa, Juan Eduardo Biehl.

“It’s tax friendly and has a super important migration, and in that sense, that also made a bit of a difference compared to what the rest of the local market offered,” Add.

Likewise, the head of strategy of Uppergrowth, Gonzalo Colucci, highlights that the focus is on “detecting high-opportunity niches, metropolitan areas that have nothing to do with what they were 10 years ago, and that in 10 more years will be still very different”.

“Everything that is shown in Latin America is Miami, New York, now a little Texas. We have been there for a long time, we already have a set of very deep relationships. Now we’re looking at Ohio in depth.”Add.

Regarding their business in Chile, from the firm they indicate that, although “there is a world to be done” in terms of legal certaintythey will still keep a part of the business focused on local real estate development.

“We are super active and super committed to Chile. We have just closed a real estate development investment fund and we are about to launch a new fund for the third quarter of this year”, Massera says.

“We have a single real estate rental fund in Chile that has offices and commercial premises. We are not currently present in Chile with residential rent, but we do have it considered within the asset classes that we can do”Add.

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