Latch to go public via Tishman Speyer’s SPAC

Deal values proptech startup at $1.56B

National /
Jan.January 25, 2021 09:30 AM
Tishman Speyer CEO Rob Speyer and Latch CEO Luke Schoenfelder (Getty; Latch)

Tishman Speyer CEO Rob Speyer and Latch CEO Luke Schoenfelder (Getty; Latch)

Tishman Speyer’s SPAC has found its match.

The New York real estate giant announced that its special-purpose acquisition company, TS Innovation Acquisitions Corp., will merge with smart-lock maker Latch, the Wall Street Journal reported. The deal would take Latch public with an expected valuation of $1.56 billion. When the deal closes — likely in the second quarter — the company expects to trade on Nasdaq under the symbol LTCH.

As part of the deal, Tishman is set to receive about 4 percent of Latch’s stake, or about $60 million.

Rob Speyer, Tishman’s chief executive, said the pandemic is pushing the spread of new technology in the real estate industry, which he said has been “technology-resistant for decades.”

“It’s hitting this period of massive disruption. It’s entrepreneurs like [Latch CEO] Luke [Schoenfelder] and companies like Latch that are leading this wave of disruption,” Speyer said.

Speyer, who will join Latch’s board of directors, said he hopes to use Tishman’s expertise and connections to help Latch expand into new countries and new building types, such as offices.

Latch launched in 2017, and also specializes in building-management software along with its smart lock technology. In 2019, it raised $126 million through a Series B funding round, which included investors like Brookfield and Tishman. At the time, it was valued at $454 million, per the Journal. It aims to be profitable by the end of 2024.

Several real estate companies launched SPACs last year, aiming to merge with proptech startups. Tishman’s blank-check company raised $300 million, while commercial real estate giant CBRE’s IPO target is $350 million. Most recently, the Chera family’s Crown Acquisitions announced it would raise $200 million through a SPAC that’s focused on proptech.

[WSJ] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    Durst Organization president Jonathan Durst and 1155 Sixth Avenue (Durst, Google Maps)
    Jenner & Block cuts footprint, takes 67K sf at Durst’s 1155 Sixth Avenue
    Jenner & Block cuts footprint, takes 67K sf at Durst’s 1155 Sixth Avenue
    Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
    Mack Real Estate takes over 7 distressed Manhattan hotels
    Mack Real Estate takes over 7 distressed Manhattan hotels
    1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
    CIM closes on $400M refi for 1440 Broadway
    CIM closes on $400M refi for 1440 Broadway
    Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
    Coming attraction: Movie theaters reopen in New York, San Fran
    Coming attraction: Movie theaters reopen in New York, San Fran
    Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
    Innovo lands $155M construction loan for LIC warehouse
    Innovo lands $155M construction loan for LIC warehouse
    Restaurants and bars accounted for a majority of the gains in February (iStock)
    Leisure, hospitality big winners in February job gains
    Leisure, hospitality big winners in February job gains
    The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
    Retailer Burlington plans to double store count
    Retailer Burlington plans to double store count
    (Getty, Photo Illustration by The Real Deal)
    Retail had its reckoning. Will subleases flood the market?
    Retail had its reckoning. Will subleases flood the market?
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...