REEF Technology Raises $700M To Reinvent Parking Lots
REEF Technology, which has expanded in recent years from a parking lot software and management company into a more diversified redevelopment specialist, has landed $700M in equity funding for continued expansion.
Mubadala Investment Co.’s financial investment arm, Mubadala Capital, led the round of funding. Also participating are SoftBank Vision Fund, funds managed by Oaktree Capital Management, UBS Asset Management and Target Global.
The capital will enable the company to increase its current 4,500 locations or so to about 10,000. REEF's business model is to acquire sites, especially parking lots, and then reinvent them as "neighborhood hubs."
Neighborhood hubs encompass a wide range of uses besides parking. After leasing the sites, Miami-based REEF upgrades them for new uses, including cloud kitchens, about 100 of which the company already operates nationwide; healthcare clinics and last-mile delivery infrastructure.
REEF's cloud kitchens allow local restaurants and national brands to launch or expand delivery services under a revenue-sharing partnership with REEF. Among other REEF clients in this realm are growing brands like Burger-Fi and David Chang’s Fuku.
Besides its kitchens business, REEF has formed partnerships with DHL for last-block e-cargo bike delivery, Carbon Health for COVID-19 testing, and Crate to Plate for vertical urban farming.
Eventually, the company plans to develop urban hubs for data-processing centers.
"We have inbound interest from companies that do edge computing and companies getting ready with 5G,” REEF CEO Ari Ojalvo told TechCrunch. “Data and infrastructure is a big part of our neighborhood hub."
Separately, REEF and Oaktree established Neighborhood Property Group, a $300M vehicle to acquire real estate. The new entity plans to make long-term investments in neighborhood infrastructure to complement REEF’s other activities.