Usually, professional investors have an interest in residential real estate as it provides an attractive risk-adjusted returns profile. But deploying capital at scale is quite challenging despite the fact that residential real estate is the largest asset class across the world.
It is said that the acquisition of single units accounts for 94% of all residential real estate transactions. So, to make it simple for real estate professionals, UK-based IMMO has developed a technology to source, appraise, and acquire single units at scale. This opens up a single unit residential real estate as a new asset class for investors.
Founded in 2017 by Hans-Christian Zappel and Avinav Nigam, IMMO digitally sources, appraises and acquires properties that are located centrally at scale on behalf of institutional investors. These properties are upgraded and turned into fully-finished living-as-a-service homes that target the long-term rental market.
Secures €72M funding
IMMO just announced that it has closed a funding round of €72 million including €11.5 million in equity from investors including Talis Capital, HV Holtzbrinck Ventures, Tom Stafford and Rahul Mehta of DST Global, Mato Peric, and others. The company is finalising second funding round with value-added investors. Notably, it raised €60 million capital from real estate investors.
The latest funding round marks a key milestone for the London-based proptech startup, which has gained €35 million in properties since September 2017, which marks its first market launch. The company aims to accelerate growth with the latest round of funding.
IMMO: What does it do?
The company operates with the mission to become “Your housing partner for life”. IMMO buys residential properties from consumers directly on behalf of professional investors. This way, it helps consumers sell their homes easily. Also, it lets investors with desired real estate exposure to scale. The proptech company’s homes are fully furnished so that tenants enjoy superior quality rental homes that are managed professionally.
Deploys machine learning!
IMMO has assessed over 6,000 property leads with its proprietary machine learning technology. The company reduces the underwriting process to just a few minutes instead of days. The inspection team collects 281 data points on each property and combines this data with millions of environmental data points such as crime statistics, distance to supermarkets, school/restaurant ratings, traffic nodes, etc. to finalise the price. With accuracy and speed, IMMO lets investors buy properties at scale directly from sellers.
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