Property Connect, a rental property tech start-up that secures optimal terms for property managers, will list on the Australian Securities Exchange (ASX) as it seeks to raise A$2.5 million as part of a reverse takeover by Conquest Agri (ASX:CQA).
The company will issue 50 million new shares at A$0.05 per share, giving it a market cap of A$12.28 million upon listing, expected approximately Monday 7 March under proposed ASX code PCH.
GTT Ventures Pty Ltd is the sole lead manager for the equity raising nd proceeds from the capital raising will go toward system development, key staff hires and working capital as Property Connect moves toward its maiden revenues.
Shaking up the US rental market
Property Connect, which was founded by former Sydney property developer Tim Manson, has developed the LiveOffer™ technology, designed to create an easy, fair and transparent system under which potential tenants can make an offer on a rental property.
The technology allows the renter to easily adjust the rent paid, move in date and lease term to create a more desirable overall scenario for the property manager.
Tim has recently relocated to California as he seeks to launch the LiveOffer™ technology into the enormous US multifamily apartment market – a mouthwatering opportunity for the start-up.
As well as creating fair market value for rental properties it will provide an opportunity for tenants to upgrade to premium apartments that become available.
Property Connect has already reached agreement with ten US property management groups, with more than 100,000 combined listings per annum, for use of the LiveOffer™ platform.
“We provide a win-win situation, instantly matching the ideal renter for the property and securing the optimum outcome for the property manager,” said Tim.
“Feedback from those who have trialled the technology has been excellent and we have a host of clients eagerly anticipating the new version.”
Version 2.0 of LiveOffer™ is expected to be launched in Q2 CY2016. Property Connect will charge a set-up fee and monthly fee for each community placed on the LiveOffer™ system by the property manager, in addition to a 1-3 per cent transaction fee per lease passed through the platform.
“I founded Property Connect due to my experience in Real Estate after coming to the conclusion that the industry hadn’t yet been effected by technology and needed new innovation,” Tim told us.
“The industry is 20 years behind and it is directly impacting on the efficiencies of major decisions such as where we live and work. Our mission here at Property Connect is simple, to innovate the way we interact with real estate.
“Specifically regarding our product LiveOffer, the lightbulb went off when we would constantly have 30 or more groups through an open house and people were falling over themselves trying to secure the property, I figured that surely there had to be a fairer way for everyone.
“LiveOffer provides the much needed visibility and transparency to renters whilst providing the property manager and owner with the optimal lease terms.”
Tim also revealed to Anthill that Property Connect to date has been funded privately via existing contacts, colleagues and his own pocket. US$1.9 million has been invested into it thus far.
The company has previously been a finalist in the Harvard Business School Real Estate Venture Competition and was a winner of the Google NEXT LA program.