APAC Realty invests in proptech startup
Singapore
APAC Realty, which operates the ERA brokerage brand here and across the Asia-Pacific, has invested S$1 million in proptech startup Dots Connected via a three-year convertible note that comes with no interest.
A convertible note is a form of debt that comes with an option to be converted into equity.
Dots Connected owns UrbanZoom, an artificial intelligence driven auto-valuation platform for real estate; and UrbanAgents, an agent referral service.
Founded in 2018, UrbanZoom analyses data from public sources to predict the value of a residential unit, and claims an overall median error of less than 3 per cent. It plans to expand into neighbouring markets outside Singapore in the next few years.
APAC Realty plans to use part of the S$5 million proceeds it earmarked during its initial public offering (IPO) for building up its technological capabilities to invest in Dots Connected. APAC Realty will also seek out other promising tech companies to invest in.
ERA will work with Dots Connected to develop "agents-facing productivity tools" through UrbanZoom and provide business leads to its agents through UrbanAgents.
APAC Realty's chief executive officer Jack Chua said: "At the time of our listing, we had communicated a three-pronged strategy to create value for our investors: deepen our presence in Singapore; expand and grow our business overseas and enhance our technological abilities."
He added: "We are delighted about our investment and collaboration with UrbanZoom as this headway will boost our technological capability to enhance productivity, raise professionalism and build stronger client relationships. This outcome backs up our commitment to provide up-to-date solutions to meet the everchanging needs of modern real estate salespersons and customers."
The investment is not expected to have any material impact on the net tangible assets per share and earnings per share of the group for the financial year ending Dec 31, 2019.
APAC Realty on Monday added two Singapore cents or 3.85 per cent to close at S$0.54, before the announcement was made.
