Traditional Real Estate firms that have simply participated in venture rounds are joining the SPAC craze. Are there enough logical PropTech acquisition targets, or will we see more electric car deals à la Jordan Vogel?
- RXR Realty’s Scott Rechler intends to raise $250 million for a blank-check company to take a real estate tech startup public. The company’s venture arm RXR Digital has only backed 10 proptech companies to date.
- Silverstein Properties’ Tal Kerret and Charlie Federman intend to raise $250 million for a blank-check firm. SilverSPAC will target fintech startups and enterprise tech companies that have real estate applications. The company’s venture arm, Silvertech Ventures has worked with 29 startups to date.
- Zillow co-founder Spencer Rascoff launched his second blank-check company, this one aiming to raise $287.5 million.
Hottest game in town: Fifth Wall Ventures, Howard Lutnick’s Cantor Fitzgerald, Chera family, CBRE, and Tishman Speyer.
Wall Street’s New Favorite Deal Trend Has Issues: Known as SPACs, these shell companies allow businesses to sell shares to the public with different disclosures than usual. “I know more people who have a SPAC than have Covid,” several financiers recently told Andrew Ross Sorkin. The truth is that SPACs are rife with misaligned incentives between the sponsor and other investors. Very few sponsors seek so-called fairness opinions from third parties to validate the price they are paying for an acquisition. (NYTimes+Nasdaq1+Nasdaq2+TRD)