JLL's arm launches USD 100mn fund to invest in tech start-ups in realty sector

Global property consultant JLL's arm has set up a USD 100 million fund for investment in companies which aim to transform the real estate industry through technology.

"JLL Spark announces today the creation of JLL Spark Global Venture Fund, which plans to invest up to USD 100 million in companies focused on leveraging technology to improve everything from real estate development and management to leasing and investing, while enhancing the experience of those who occupy it," the consultant said in a statement.

The fund will help entrepreneurs and their companies by connecting them with JLL's business lines and clients for insightful feedback and product distribution, it added.

According to a recent report by JLL and Tech in Asia, proptech start-ups in Asia Pacific are outpacing their counterparts in Europe and the United States with 179 of them raising around USD 4.8 billion in funding between 2013 and mid-2017 over 60 per cent of the global total.

It forecasts that funding for proptech start-ups in this region will reach USD 4.5 billion a year by 2020.

With this fund, JLL Spark anticipates significant opportunities in the Asia Pacific.

"Asia Pacific is home to the world's leading smart cities, many of which are powered by tech-enabled real estate tools. JLL is committed to cultivating next-generation proptech start-ups and promoting Asia Pacific as a hub of technology innovation for real estate, and JLL Spark Global Venture Fund is an extension of that goal," said Mihir Shah, Co-CEO at JLL Spark.

The new fund will focus on seed and Series A investments, as well as select later stage rounds. Typical investment size will range from a few hundred thousand to several million dollars, the statement said.