Despite speculation that the housing market has cooled off a bit in recent weeks, investments in the real estate services sector have been maintaining a steady rise. There have been a couple of interesting deals that are worth talking about more in depth.
Accel-KKR, a technology-focused private equity firm, has made a strategic growth investment in PropLogix, a title support company providing tech-enabled due diligence services and software for closing professionals.
An executive at a real estate financier offered some commentary about the subject. “When I joined Civic in 2017, I thought we’d be attractive as an acquisition candidate down the line, but I never imagined a bank would be our suitor,” William Tessar, president of Civic Financial Services, tells Mergers & Acquisitions. “The acquisition of Civic by PacWest Bancorp in February 2021 has been a positive experience from conception to completion, resulting in seven consecutive months of record-breaking production.”
His note about the company’s continued growth over the past few months seems to bear out this trend. Civic is a private money lender, specializing in the financing of non-owner occupied residential investment properties. The demand for its services have remained steady because its financial services do not hinge on individual home sales and purchases.
Additionally, JLL (NYSE: JLL) has agreed to acquire Skyline AI, an artificial intelligence technology company that uses machine learning models in commercial real estate. Similar to the previous deals, it reflects the value of real estate services.
This pattern could be attributable to a few factors, but the strongest one seems to be the continued need for technology and services that facilitate and simplify the home buying process.
I will be on the lookout for more deals like these, as I expect this trend to remain solid.