I shall be Re-Leased: Hawke's Bay property management software startup raises $23m
Re-Leased, a property management software startup with staff in Auckland and Hawke's Bay, has raised US$15 million ($22.5m) in a round led by JLL Spark, the venture capital arm of London-based real estate multinational Jones Lang LaSalle.
The round follows an earlier $2.3m seed raise in 2018, which was backed by investors including Ezibuy founder Gerard Gillespie. Chief executive Tom Wallace says Re-Leased has raised a total of $12.5m through a series of private investments. The JLL deal is its first institutional raise.
Founded by Wallace, Re-Leased makes cloud-based software for commercial property managers and landlords to manage workflow, keep an eye on their portfolio and collect rent. It integrates with Xero and a number of other cloud-based accounting programs - which Wallace sees as a point of difference with older incumbents that integrate with larger, more complicated ERP (enterprise resource planning) systems.
The privately held firm hasn't released financials, but Wallace says it is now used to manage some 50,000 properties and 100,000 leases across New Zealand, Australia, the US, the UK and elsewhere.
The UK is now Re-Leased's largest market, followed by Australia.
Wallace won't comment on revenue, but says his firm now processes more than US$10 billion in rent per year.
The CEO says the new capital will be used to accelerate its global expansion.
It will also bankroll the launch of a series of new payment, insurance and data services for the commercial property sector.
Re-Leased already has data services, which helped balance its business during the pandemic as rents swooned but demand increased for information on a suddenly volatile market.
The firm has 150 staff today, including 50 hired over the past year. Wallace says some of the new funds will be used to recruit another 50 this year, with some of the new hires focused on expanding Re-Leased's business in North America, the UK and around Asia-Pacific.
Wallace says product development is mostly carried out in Napier, however, and he anticipates that's the way it'll say.
He says Re-Leased is open to remote work and recruits globally, telling candidates they have the option of shifting to Hawkes Bay, visas allowing.
He says Napier is a draw. While the city's housing stock is now tight, it still has a cheaper cost of living that the main centres and lifestyle appeal.
"With Covid, escaping the big city appeals to a lot of people," the founder says.
Wallace expects the JLL investment to open a lot of doors. His firm will have access to the real estate giant's global network of clients, and also be able to sell into JLL - which has formerly had no cloud-based software for managing commercial properties. Filling that gap was one of the core reasons beyond the investment.
JLL's global networks. The NYSE-listed firm has a US$11b market cap and 90,000 staff, and manages real estate worth some US$58b across 80 countries.
"Commercial real estate needs to adapt to remain relevant and thrive in a post-pandemic world," Wallace says.
"This investment and partnership with JLL Spark will help to cement our place as a global leader in this technological shift."
Wallace declined to give a post-money valuation but confirmed he retains a majority shareholding.