A real estate SPAC led by Benchmark Real Estate’s Jordan Vogel is in talks to bring Faraday & Future, an electric-vehicle startup to the public markets. The blank check company known as Property Solutions is seeking to raise more than $400 million in equity to support the deal, which is slated to value the combined entity at around $3 billion, Bloomberg reported.
- Stock market approves: As of 12:47 p.m. EST, Property Solutions’ stock (NASDAQ:PSAC) was up about 14.9% from Friday’s closing price.
- Company beefs up for deal: Faraday this month appointed Zvi Glasman, the former chief financial officer of Fox Factory Holdings, as its CFO. It has said its flagship vehicle, the FF 91, will be available for sale about a year after the close of a successful round of funding, Bloomberg noted.
- Why it matters: At its inception, the SPAC said it would target firms that service the real estate industry… Although we agree that electric vehicle infrastructure (e.g. charging stations) will be major real estate story moving forward, Faraday is a car company.
- Frothy markets allow for an expansive view of PropTech: Faraday was founded by Jia Yueting, a Chinese entrepreneur who in October 2019 filed for bankruptcy in the U.S. after running up billions of dollars in personal debt. Property Solutions, raised $230 million in a July 2020 IPO. [Bloomberg]