AI-assisted business

Propstreet, which provides AI-driven brokerage services, is now taking it a step further by allowing landlords to “sell pressure test” individual properties or portfolios. FV can also tell you that the company is planning to expand its platform to Germany, the UK and the US.

Propstreet, the underground marketplace for commercial real estate transactions, founded in 2018 and headquartered in Stockholm, continues to develop new services and plans to expand into additional countries.

The company recently launched a new service which means property owners can post individual items or portfolios for sale. Representatives do this anonymously, but provide potential buyers with certain information about, for example, rental income, inventory type and location.

– Our AI matching allows landlords to get a real-time idea of ​​the buying pressure from potential investors for their properties. The property owner can then choose whether it’s interesting to go ahead and inform investors with an anonymous teaser, says Kim Lundgren, Nordics expansion manager at Propsteet.

He told FV that many property owners want real interest in their property. However, Propsteet is not targeted at any “business”.

– In order for a property owner to communicate with potential investors, a transaction advisor must be in touch with the deal. Our strategy is based on close cooperation with transaction advisory firms, where through our technology platform we can add an expanded network and access to new sales assignments.

Kim Lundgren said Propstreet has 2,000 investors active within the company’s system, with 75 percent of them in the Nordics.

In the past, Propstreet only received objects via advisors and then marketed them on its platform, with the information the client wanted to provide.

– Our platform makes it easier for players who want to do business, especially with counterparties that they or their advisors have no idea about. We now cover a large number of investors in Sweden, so there are few who do not use our service, says Kim Lundgren, who points out, however, that they still have a number of large brokerage firms to convince.

Propstreet receives compensation from the buying party for lost trades in addition to annual subscription fees from advisors. Kim Lundgren says.

Propstreet has a fairly small organization with nine employees, and does not expect to have that many more even if the business expands.

-We have succeeded well and reached a good size in Sweden and Norway. “We would like to go a little further in the fall into Finland and Denmark before we take the next step into Germany and then Great Britain,” says Kim Lundgren.

The map already contains the United States, which will be relevant later. After that, a larger funding round may be needed, as Lundgren says they already have strong interest from investors, if that becomes relevant.

– In many ways, it’s easy to scale our business idea. The platform has long been available in several languages. We want it to go quickly. We’re alone in this today, but it’s only a matter of time before more people develop similar services. Then we want to have time to get a good foundation. But there are many legal issues in some markets that we have been working on for some time, for example in Germany.

Propstreet is 50 percent owned by founders and employees. 20 percent is owned by Proptech Farm and the rest is owned by “friends and family.” Bringing in big real estate companies or consulting firms as owners is not attractive.

-We must be independent. This is important for our credibility, says Kim Lundgren.