Connect with us

Real eState

SoftBank-Backed Compass Real Estate Brokerage Files for IPO – BNN

Published

 on


(Bloomberg) — Compass Inc., a SoftBank-backed company that’s among the largest real estate brokerages in the U.S., filed for an initial public offering, disclosing growing revenue and shrinking losses.

The New York-based startup in its filing Monday listed the size of the offering as $500 million, a placeholder that will change. Compass will disclose further details of the offering, including the size and target price range, in a later filing.

The company lost $270 million on revenue of $3.7 billion last year, compared with a loss of $388 million on revenue of $2.4 billion in 2019, according to its filing.

Compass was founded in 2012 by Robert Reffkin, a Goldman Sachs Group Inc. alumnus who was once Gary Cohn’s chief of staff at the bank, and by Ori Allon, an engineer who had sold previous startups to Google and Twitter Inc. After initially exploring different models, they wound up building a traditional brokerage that invested in tech designed to make agents better. They also spent liberally to poach agents from competitors and roll up smaller brokerages.

By 2019, Compass had raised more than $1.5 billion in capital, including hundreds of millions of dollars from SoftBank Group Corp.’s Vision Fund. The company, valued at $6.4 billion, had also grown into the third largest U.S. brokerage with more than $98 billion in deal volume, according to its filing.

Despite its fast growth, Compass’s critics argued it was a traditional real estate brokerage that’s valued like a tech company. Those voices were loud enough that the company’s chief financial officer sent an eight-point memo to employees and agents in October 2019 detailing the ways the company differed from WeWork.

“They say they’re a tech company, and they back it up in the sense that they have hired lots of engineers, who are building and releasing technology,” said Mike DelPrete, a real estate strategist who follows the company. “They’re talking the talk and walking the walk, no question about that. The question is, does it make a difference?”

Compass contends its technology offers agents better and more time-efficient ways to schedule meetings, design marketing materials and communicate with clients. The company has invested heavily in engineers to build artificial intelligence that pulls those tools together, arguing that its innovation is integration.

The offering is being led by Goldman Sachs, Morgan Stanley and Barclays Plc. Compass plans for its shares to trade on the New York Stock Exchange under the symbol COMP.

©2021 Bloomberg L.P.

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

PGIM Real Estate, Revera Affiliate Target UK Market in Newly Formed JV

Published

 on

Real Estate Sales In September

PGIM Real Estate has been active in recent months providing capital to facilitate blockbuster senior housing acquisitions. Now the firm is looking to capitalize on demand for senior housing in the United Kingdom.

The Madison, New Jersey-based real estate investor and lender announced this week it is entering into a joint venture with Signature Senior Lifestyle, an affiliate of Revera, to develop and operate senior housing communities around greater London

Mississauga, Ontario-based Revera serves 20,000 older adults in long-term care homes and retirement residences in Canada. It is also the majority shareholder of Sunrise Senior Living, one of the largest senior housing providers in the U.S. The company operates a portfolio of 12 communities in the U.K. under the Signature Senior Lifestyle brand, with one community in development that is slated to open in autumn 2021.

Advertisement

The JV has one development underway — a senior housing community, or “prime care” home, in southwest London. PGIM worked with Elevation Partners, a London-based investor and asset manager in U.K. health care real estate, in sourcing, structuring and executing the venture. Additionally, PGIM will retain the firm to leverage its expertise.

PGIM and Revera did not respond to requests for comment from Senior Housing News regarding details about its development pipeline.

London is emerging as a future hotbed of senior housing development, spurred by favorable demographic growth trends and a lack of available supply, and the PGIM-Revera venture will find competition.

Advertisement

Maplewood Senior Living CEO Gregory Smith told SHN last month that demand for U.K. senior housing is comparable to major U.S. markets such as New York and San Francisco, where supply has historically been constrained.

Maplewood and its investment partner, Omega Healthcare Investors (NYSE: OHI) are looking to expand its luxury Inspir brand to the U.K., and identified five suburban markets around London with high barriers to entry that are favorable for the brand’s growth.

Revera CEO Tom Wellner sees similar untapped upside potential for senior housing in the U.K.

Source: – Senior Housing News

Source link

Continue Reading

Real eState

Where in Canada are house prices increasing the most? Maybe not where you think – CTV News

Published

 on


TORONTO —
Canada saw a surge in housing prices over the past year due to COVID-19, a market trend experts say is caused by people working from home more often and moving to rural and suburban areas.

Data released by the Canadian Real Estate Association (CREA) shows that when comparing the average market prices from February 2020 to February 2021, Canada had a 25 per cent year-over-year increase. The average price rose from $542,484 to $678,091.

“One factor is that with work-from-home even more generalized, many people don’t have to live within commuting distance from their jobs,” Shaun Cathcart, senior economist at CREA, told CTVNews.ca. “That means that folks who own condos and smaller homes can take out built-up equity and move to a property that better meets their needs – as over the past year, home is not only where you eat a few meals and sleep, but also the office, your kids’ school, playground, gym, etc.”

The largest year-over-year percentage changes came from the Northwest Territories (48.1%), Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.5%), and New Brunswick (20.9%).

Cathcart noted that the higher percentage change in Northwest Territories is likely due to the fact that in both February 2020 and February 2021, six homes were sold throughout the entire territory and the ones that were sold in 2021 were marked at a higher price.

When looking at the provinces and territories that had the largest upsurge in terms of price difference, Ontario sits at the top of the list with an increase of over $170,000. Northwest Territories came next, followed by British Columbia, Nova Scotia, and Quebec.

The data also shows that prices in suburban and rural areas were impacted the most and saw the biggest changes, with regions like Rideau-St. Lawrence and Sarnia-Lambton in Ontario averaging about a 50 per cent increase from the previous year.

“With people no longer having to live within commuting distance to their jobs, as long as suburban and rural areas have decent internet, they become even more attractive to families looking for more space,” said Cathcart.

Find your region and the year-over-year price and percentage change below.

Cathcart says that Canadians can expect to see sales and prices increase this year, but forecasts sales to slow down in 2022 while prices remain high.

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

Before you continue

Published

 on



Google uses cookies and data to:

  • Deliver and maintain services, like tracking outages and protecting against spam, fraud and abuse
  • Measure audience engagement and site statistics to understand how our services are used

If you agree, we’ll also use cookies and data to:

  • Improve the quality of our services and develop new ones
  • Deliver and measure the effectiveness of ads
  • Show personalised content, depending on your settings
  • Show personalised or generic ads, depending on your settings, on Google and across the web

For non-personalised content and ads, what you see may be influenced by things like the content that you’re currently viewing and your location (ad serving is based on general location). Personalised content and ads can be based on those things and your activity, like Google searches and videos that you watch on YouTube. Personalised content and ads include things like more relevant results and recommendations, a customised YouTube homepage, and ads that are tailored to your interests.

Click ‘Customise’ to review options, including controls to reject the use of cookies for personalisation and information about browser-level controls to reject some or all cookies for other uses. You can also visit g.co/privacytools at any time.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending