Latch to go public via Tishman Speyer’s SPAC

Deal values proptech startup at $1.56B

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.

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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.”

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“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