The Finnish family office Pontos Group is accelerating the digitalization of real estate by partnering with Fifth Wall, a global venture capital firm. Fifth Wall is the largest venture capital firm focused on technology-driven innovation for the global real estate industry. Pontos has recently made a commitment to the Fifth Wall Real Estate Technology European Fund.
The investment is connected to Pontos’ new strategy, which focuses on transforming the construction and real estate industry through digitalization.
“The partnership with Fifth Wall strengthens our position as a company focusing on the digitalization of real estate. The global real estate base is the largest asset class in the world. It accounts for 35-40 percent of global carbon dioxide emissions, energy consumption and raw material. Despite this, innovation investments in real estate technology have remained very low for years. We therefore believe that the digitalization of real estate holds great potential. Because of its origins, Pontos is well positioned to drive change in the industry through technology,” says Risto Kankaanpää, Investment Manager at Pontos.
A larger network will help Pontos drive the technological transformation of the real estate industry. “Fifth Wall is a strategic partner that offers world-class insight into technology innovation in real estate. As one of the most reputable funds in the industry, the firm has a large global network and superior knowledge of proptech. It is wonderful to get this type of know-how into Finland and advance collaboration between technology firms and operators in the construction industry,” Kankaanpää states.
The collaboration complements Fifth Wall’s efforts to expand its global network.
“When Fifth Wall was formed in 2016, US-based real estate organizations had only just begun to recognize that investing in technology was imperative to the future of their business,” said Brendan Wallace, Co-Founder & Managing Partner, Fifth Wall. “Over the last three years, that same recognition has now come to Europe as well, and we’re thrilled to welcome Pontos alongside Fifth Wall’s global consortium that now includes 60 corporate real estate investors from 14 countries, including the UK, France, Spain, Germany, and Finland. We look forward to working with Pontos on transforming its business through technology and innovation.”
“Transforming the Built World with the help of technology is our mutual goal,” said Roelof Opperman, Managing Director, Fifth Wall. “Fifth Wall hopes to work as a connector among our investors and the revolutionary real estate technology companies we invest in, providing a platform for dialogue between real estate and technology industries. Pontos brings its strong background, expertise and networks from Nordic real estate markets to the Fifth Wall ecosystem, and we look forward to working with them to help advance the Nordic proptech ecoystems.”
Pontos Group is a Finnish family office that invests in real estate, real estate development, real estate digitalization, growth companies and private equity funds. The company is an active and long-term owner committed to the continuous development of its portfolio companies. It invests in real estate and companies in Finland and its surrounding area as well as private equity funds globally. Pontos seeks to increase investments in the digitalization of the real estate industry and the development of real estate lifecycles, all the way from construction to usage. The company seeks to develop cities and population centers in a way that is sustainable for people and the environment. For more information: www.pontos.fi.
About Fifth Wall
Founded in 2016 and based in Los Angeles, California, Fifth Wall, a Certified B Corporation, is the largest venture capital firm focused on technology-driven innovation for the global real estate industry. With approximately $1.2 billion in commitments and capital under management, Fifth Wall connects many of the world’s largest owners and operators of real estate with the entrepreneurs who are redefining the future of the Built World. Fifth Wall is backed by a global mix of more than 60 investors from 14 countries, including Acadia Realty Trust, Azora, BNP Paribas Real Estate, British Land, CBRE, Cushman & Wakefield, D.R. Horton, Equity Residential, Gecina, GLP, Hines, Host Hotels & Resorts, Hudson Pacific Properties, Lennar, Lowe’s Home Improvement, Macerich, Marriott International, MERLIN Properties, MetLife Investment Management, Mitsubishi Estate, News Corp, MOMENI, Nuveen Real Estate, Pontos, Prologis, PulteGroup, Related Companies, SEGRO, Starwood Capital, Toll Brothers, Vanke, and others. Fifth Wall believes this strategic corporate consortium represents one of the largest groups of potential partners in the global Built World ecosystem, which can result in game-changing investments and collaborations in promising portfolio companies in retail, residential and multi-family, commercial, industrial, hospitality, and more. For more information about Fifth Wall, its partners, and portfolio, visit www.fifthwall.com.
This announcement is not an offer to sell or a solicitation of an offer to buy any securities. Any securities referred to in this announcement have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction. Consequently, the securities may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction. No public offering of the securities is being made in the United States.