Fifth Wall raises €140m for European proptech fund

Fifth Wall has raised €140m for its European Real Estate Technology Fund, a fund aiming to accelerate proptech innovation adoption.

The venture capital firm said the fund’s backers include Aldar Properties, Azora Capital, BNP Paribas Real Estate, Conren Tramway, DAMAC Group, Gestilar, Inmobiliaria Colonial, Ivanhoé Cambridge, Knight Frank, Merlin Properties, MOMENI Group, Neinver, affiliates of Northwood Investors, Pecunia, PGIM Real Estate, Pontos Group, Redevco, Segro, and Tramway Capital.

The European fund will target investments in high-potential European startups and will also potentially provide co-investing opportunities alongside the firm’s core North American Real Estate Tech funds.

Fifth Wall said the fund has already completed investments into startups, including Spanish Ibuyer platform Clikalia and on-demand grocery delivery firm Gorillas.

Brendan Wallace, co-founder and managing partner at Fifth Wall, said: “We are thrilled to expand our firm into Europe as we aim to replicate Fifth Wall’s position as the leading proptech investor in North America with this expansion into Europe and Israel.”

Wallace said the success of Fifth Wall’s model is premised on identifying the leading proptech companies and accelerating their “growth through Fifth Wall’s global network of more than 90 strategic investors”.

“Having so many of the leading European real estate firms supporting our European Fund will enable us to help accelerate the expansion of the proptech ecosystem in Europe and Israel,” Wallace said.

Soumen Das, CFO at Segro, said: “We look forward to continuing our relationship with Fifth Wall through our new investment into its European Fund, following our original investment in its Fund II in 2018.”

Patrick Brenninkmeijer, business development director at Redevco, said: “The value of being invested in Fifth Wall’s European Real Estate Technology Fund is the early exposure to transformative proptech solutions and the guidance of the Fifth Wall team in exploring new ways to solidify Redevco’s business model,”

“The great appetite for the fund underlines the importance of technological innovation for the real estate industry and we look forward to continuing the fruitful partnership with Fifth Wall.”

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