Commerz Real is investing in real estate technology start-ups in Europe through a fund set up by Proptech 1 Ventures.

The €35bn asset manager has made a €5m commitment to PT 1 Early-Stage Fund II, a venture capital fund seeking to raise €100m to invest throughout Europe in proptech start-ups.

Proptech 1’s debut venture capital fund closed in the first quarter of 2022 as it raised €50m. Proptech 1’s previous fundraising has been backed by investors including the US-based proptech investor JLL Spark Global Ventures, project developer Evoreal, construction firm Otto Wulff, and Scout 24 Group.

Henning Koch, Commerz Real’s CEO, said: “We were won over firstly by diversified access to innovative technologies in the real estate industry, and secondly by the focus on sustainability. Both are important pillars in our corporate strategy.”

Steffen Wagner, the head of business model innovation at Commerz Real, said: “This is a win-win situation: start-ups and the fund are gaining a strategic partner and a potential exit route, and we as Commerz Real can observe the companies in greater detail thanks to the long collaboration, thus allowing us to make strategic decisions that are extremely well-founded.”

To read the latest edition of the latest IPE Real Assets magazine click here.