VTS Acquires Proptech Startup Rise Buildings for $100M
VTS has acquired fellow proptech startup Rise Buildings, which provides an app to control operations and tenant experience in properties, for somewhere “in the neighborhood of $100 million,” a source with knowledge of the deal confirmed.
The deal allows VTS, which has a leasing and management platform for owners, to fold Rise into its service to offer landlords ways to sign renewals early and reduce vacancies, while tenants can use Rise’s data to develop a safe, return-to-work plan, VTS said in a release. The deal was first reported by The Wall Street Journal.
“By integrating Rise into the VTS offering, our aim is to redefine the category of tenant experience and provide landlords with a full-service platform that continues the journey of digitizing the entire asset experience,” Nick Romito, CEO of VTS, said in a statement. “After an extensive evaluation, we believe Rise has the right approach, technology, and team; our landlord customers agreed and welcomed the decision.”
Rise is currently in more than 130 million square feet of office space around the world and its users include landlords Blackstone, Hines and CIM Group. Being integrated into VTS will greatly expand Rise’s presence as VTS is currently in use in 12 billion square feet of office, retail and industrial buildings.
“Joining forces with VTS will give us the ability to accelerate the delivery of the best-in-class technology offerings landlords need now more than ever to emerge from COVID-19 unscathed,” Rise co-founder and CEO Prasan Kale, who will become a managing director at VTS, said in a statement. “This combination positions us for future growth, and ensures tenants have the information and capabilities to return to work safely.”
As the coronavirus pandemic emptied offices around the world, it accelerated owners’ use of proptech, as they scrambled to make sure properties are safe for when tenants eventually return. And it isn’t just private landlords getting into the proptech game.
In December, New York City released a request for proposals to partner with a company that would vet and recommend proptech startups that it could roll out into the city’s real estate portfolio.