View and its smart-window technology is going public through a special-purpose acquisition company, or SPAC. The company’s windows, which have already been deployed across multiple real estate asset classes, have built-in technology which tints glass, optimizing natural light to control heat and glare.
The transaction was sponsored by Cantor Fitzgerald and values View at an enterprise value of $1.6 billion. Add View to the list of proptech companies that are capitalizing on the SPAC trend to get liquidity for the founders, employees, and investors.
More on View
The timing could not really be more perfect for View and its shareholders. Not only is right now a great time to take a company public, View’s technology is at the intersection of climate change, human health, and smart buildings, all hot topic areas that are quickly expanding.
View’s Chairman and CEO, Dr. Rao Mulpuri said, "climate change and human health are two of the most important challenges and opportunities of our time, and View is well-positioned to use technology to drive change across the real estate industry...View has created groundbreaking products, covered by over 1,000 patents and built state of the art manufacturing operations in the United States."
View uses the internet of things (IoT) technology to connect each pane of glass to the internet via a unique IP address. Howard Lutnick, Chairman and CEO of Cantor Fitzgerald’s SPAC that ran the deal said, "Buildings will no longer need blinds and shades, which will enhance the experience of building occupants, substantially reduce energy usage, and improve space utilization."
To Lutnick’s point, these internet-connected windows cannot only help boost the mental and physical health of tenants, they can also reduce energy consumption, which means savings and bottom-line impact for landlords.
View has deployed its technology across various commercial real estate asset-types, such as offices, airports, healthcare facilities, and apartment communities.
Energy consumption has become an important topic in real estate. As a result, we’re seeing real estate owners and operators adopt technologies that drive energy and utility efficiencies. Factors leading to this widespread recognition and adoption include:
- Climate change is becoming more of a priority on the political agenda with each passing day.
- Property owners not following energy efficiency guidelines will have to pay a steep price for noncompliance under recent regulations, including in New York City.
- Aside from regulatory pressure, energy-saving tools are giving property owners and operators ROI benefits.
A quick SPAC lesson
A SPAC, often referred to as a "blank check" company, is a shell vehicle that uses capital raised through an initial public offering (IPO) to buy a private company. The acquisition, which usually has a time window of up to two years, takes the private company public. This practice has recently become quite popular in the real estate industry.
The Millionacres bottom line
When dealing with a large portfolio of commercial and/or residential assets, cost savings from energy-efficient practices can drive dramatic net operating income (NOI) impact. View is a prime example of that possible savings.
While the broader SPAC trend may be the poster child of the speculative mania we’re seeing in the market today, technology solutions that deliver energy efficiency and NOI impact to landlords will certainly be here tomorrow and beyond.