A fund aimed at investing in high-potential European startups, providing co-investment opportunities with the firm’s North American funds
LONDON, February 16, 2022 / PRNewswire / – Fifth Wall, the largest venture capital company focused on technology for the global real estate industry, has announced that it has closed more than 140 million euros for its European Real Estate Technology Fund (European Fund). Like previous Fifth Wall funds, the European Fund has attracted the largest property owners and developers, including Aldar Properties, Azora Capital, BNP Paribas Real Estate, Conren Tramway, DAMAC Group, Gestilar, Inmobiliaria Colonial, Ivanhoé Cambridge, Knight Frank, MERLIN Properties, MOMENI Group, NEINVER, subsidiaries of Northwood Investors, Pecunia, PGIM Real Estate, Pontos Group, Redevco, SEGRO and Tramway Capital. The European Foundation aims to accelerate the implementation of European proptech innovations, replicating the success of previous major funds of North American technology Real Estate Tech. Thus, the capital of the Fifth Wall is managed approximately $ 3.0 billion.
“We are excited to expand our firm Europe as we seek to replicate Fifth Wall’s position as a leading investor in proptech North America with this extension in Europe and Israel“- said – Brendan Wallace, co-founder and managing partner of Fifth Wall. “The success of the Fifth Wall model is based on identifying leading proptech companies and accelerating their growth through Fifth Wall’s global network of more than 90 strategic investors. Having a large number of leading European real estate firms supporting our European Foundation will help us accelerate the expansion of proptech’s ecosystem Europe and Israel».
The European fund will be aimed at investing in European startups with high potential, and potentially provides opportunities for joint investment with the fixed assets of the North American company Real Estate Tech. Investments from this fund will range from A series to C series. The fund has already completed investments in fast-growing startups, including Clikalia, a leading Spanish platform Ibuyer and Gorillas, a company to deliver products on demand.
“We look forward to continuing our relationship with the Fifth Wall through our new investment in its European Fund following our initial investment in its Fund II in 2018,” he said. Sumen Das, CFO of SEGRO. “Fifth Wall’s leading platform and deep market knowledge have provided valuable information about the PropTech market and new technologies.”
According to PitchBook, the European proptech market currently accounts for about 20% of all proptech global activity in 2021, including € 3.8 billion in venture capital investment in more than 200 deals. This is an increase of 3.5 times compared to the level of investment in 2020 and more than 4 times compared to the level of 2019. The average size of a European deal with proptech has increased from 1.6 million euros in 2019 to 3.2 million euros in 2021.
“The value of investing in the European real estate fund Fifth Wall is the early impact of proptech’s transformational solutions and Fifth Wall’s leadership in exploring new ways to strengthen Redevco’s business model,” Patrick Brenninkmeier, Director of Business Development at Redevco. “The fund’s great appetite underscores the importance of technological innovation for the real estate industry, and we look forward to continuing a fruitful partnership with Fifth Wall.”
A European fund headed by industry veterans Rulaf Opperman and Miguel Nigora, both based in g Londonoffers a powerful gateway between US and European startups, as well as a valuable network to promote the proptech European ecosystem Europe and beyond. The closure of the European fund with oversubscription follows the Fifth Wall, announcing that the company has attracted $ 1.1 billion through its funds in 2021.
About the fifth wall
Founded in 2016, Fifth Wall, a certified B corporation, is the largest venture capital company focused on technology for the global real estate industry. With about $ 3.0 billion in commitments and capital under management, the Fifth Wall connects many of the world’s largest property owners and operators with entrepreneurs revisiting the future of the built world. The fifth wall is supported by more than 90 strategic limited partners (LPs) from more than 15 countries, including BNP Paribas Real Estate, British Land, CBRE, Cushman & Wakefield, Host Hotels & Resorts, Kimco Realty Corporation, Lennar, Lowe’s Home Improvement, Marriott International, MetLife Investment Management, Related Companies, Starwood Capital, Toll Brothers and others. Fifth Wall believes that this consortium represents one of the largest groups of potential partners in the global ecosystem Built World, which could lead to transformational investment and collaboration with promising portfolio companies. For more information on Fifth Wall, its records and portfolio, visit www.fifthwall.com.
This is a marketing communication in relation to the European Real Estate Technology Fund of the Fifth Wall (European Fund). The European Fund was finally closed; therefore, subscribing to a stake in the fund is no longer possible. Investors interested in the Fifth Wall and its funds should, taking into account this information about the European Fund, believe that investing in the European Fund is associated with a high degree of risk and is suitable only for investors who are able to assess and bear the risks it poses. There can be no certainty that the European Fund will be able to achieve its investment goals or that investors will receive a return on their capital. Investors interested in investing in a fifth wall fund should consult a memorandum on the private placement of the relevant fund before making any final investment decisions.
SEGRO and Redevco are currently investors in the European Fund and may have, now or in the future, other business relationships with Fifth Wall and its affiliates. The fifth wall did not compensate SEGRO or Redevco directly or indirectly for their participation in this press release. SEGRO and Redevco may have, now or in the future, certain preferential rights to Fifth Wall funds and other strategic or business relationships with Fifth Wall or its affiliates, including preferential access to certain investment opportunities and access to other services provided by Fifth affiliates. Wall is not bound by their investment in the European Fund. As a result, the views of SEGRO and Redevco regarding the Fifth Wall and the European Fund do not necessarily correspond to the views of other investors in the European Fund, including those who do not have access to such preferential rights.
See original content for multimedia downloads: https://www.prnewswire.com/news-releases/fifth-wall-closes-140-million-for-oversubscribed-european-real-estate-technology-fund-301483126.html
SOURCE FIFTH WALL