Alpha Mead Raises $1m to Kickstart Rent4Less
Alpha Mead has raised a fixed-rate series one $1m private placement bond to promote the culture of monthly rent payment across the continent’s housing and office markets by launching “Rent4Less”
The Senior Secured Private bond issued by Alpha Mead is another milestone in the series of the company’s expansion strategies to increase access to shelter and perpetuate the culture of monthly rent payment across the continent’s housing and office markets.
Rent4Less by Alpha Mead is a rental scheme designed to support individuals and small businesses with flexible, monthly pay-as-you-use rent for homes and offices.
A statement by Managing Director of Alpha Mead Development Company, Damola Akindolire, said the funding was coming as a result of an outstanding early growth of the product and the trust that the investment community reposed in Alpha Mead.
Akindolire said, “Rent4Less has proven over the last 12 months that it is a product that has been designed as a response to the economic challenges that came with the pandemic.
“We are a member of a large real estate group that has drawn insights from the experiences of other businesses within our group.
“Over 80 per cent of our growing population live in rental accommodations and we are happy that we have not just solved a major problem with Rent4Less, we have even proved within a very short time that we can accelerate growth and replicate this success across Africa; and we thank Cardinalstone for getting on this journey with us.
“Under our Guaranteed Rental Income Programme, Rent4Less will also ensure that landlords enjoy early and consistent economic benefits on their assets, increase occupancy levels, and also leverage its group’s expertise in facilities management to ensure that landlords’ assets remain in valuable condition.”
The Head, Marketing & Corporate Communication, Olusesan Ogunyooye, explained that the company’s goal was to demonstrate that monthly rent was also possible in Africa; and safe, secure and comfortable homes or offices should not be the exclusive preserve of those who have huge funds to either buy or pay annual rent for their home or offices.
Business Manager, Rent4Less, Nelson Nlemuzor, said their product was not just about the rent payment cycle but also about space utilisation.
According to the company, in June 2020, it fully redeemed a Series 1, tranche A 19.76 per cent fixed rate $3.5m (N1.45bn) bond.
The bond, issued in partnershipwith DLM Trust Company and UTL Trust Management Services, was utilised for the construction of 100 family units in Lekki, Lagos.