Like their fellow travellers in Australia, US real estate investment trusts have had a bumper year, raising more than $US32 billion ($47 billion) in secondary equity in the first three quarters of 2019.
But there is a more significant number that puts that figure into context. In the same three-month period, venture capital firms invested $US25 billion in what global consultancy EY calls “built-world tech”.
Yes, that’s right. The money going into built-world tech is equivalent to nearly 80 per cent of that invested in traditional secondary raisings for the listed property.
Which means the seemingly solid world of real estate, already transformed by online retail, WeWork and Airbnb, is headed for further disruption.
The definitions are a bit rubbery. EY calls built-world tech a subset of the more than 7000 private real estate tech firms globally that have received a combined $US155 billion in funding over the past three years.
Find out more :
https://www.afr.com/property/commercial/why-money-is-pouring-into-proptech-20191023-p533ec
