Why we invested in Auctree

Auctree, an online real estate platform for distressed assets, has just received a funding round of 2.5 million euros led by Samaipata.

It was founded in 2021 by Marc Fluvià, Mike Cooper and Marc González and is headquartered in London and Barcelona.

Auctree is on a mission to build the go-to-platform for opportunistic real estate investment in Europe. The company’s vision is to increase transparency and liquidity in this category by leveraging technology to efficiently curate complex supply and by acquiring previously locked out demand from institutional and retail investors.Auctree's technology allows any investor to access opportunistic real estate investments from an exclusive supply of assets primarily from large funds and banks, with whom Auctree collaborates closely.

The platform helps individual and professional investors navigate the investment process in this type of assets, which enables access to very attractive returns. Auctree has already achieved significant commercial traction thus far and this investment will allow the company to tackle new opportunities and accelerate on its expansion.

Continue reading to learn more about our thesis around the investment and be sure to check out Auctree’s listings if you are interested in real estate investment.

A large and complex asset class prone for disruption

Distressed real estate and real estate-backed loans are a huge asset class in Europe, comprising several sources of supply. Recent years have consolidated this asset class for institutional investors, whom have offloaded large portfolios from banks and other funds. However, these funds are not long term holders of these assets and have found that the idiosyncrasy of these properties does not mix up well with traditional sale channels. Their legal and operational journey is cumbersome and sellers struggle to offload assets at the desired speed. Moreover, many would-be buyers are locked out from this category due to complexity and lack of transparency.

Repossession and judicial processes offer early divestment opportunities that are currently hardly being seized due to short timeframes and poor service by legacy real estate players. Legacy players run inefficient, labor-intensive, processes and have a very limited value proposition for the buy-side. Auctree offers an improved service to sellers while unlocking access to opportunities of prospective buyers.

A tech-enabled platform can unlock liquidity in this space

Auctree’s platform unlocks significant value for all the stakeholders in this space. Buyers enjoy lower barriers to entry due to increased transparency and curation, allowing them to focus on the underlying investment opportunity and seize above-market returns. Sellers are able to tap a larger and more liquid pool of demand, at an earlier stage of the process, benefiting their divestment strategy. Auctree partners with real estate professionals on the ground for certain aspects of the transactions, leveraging their expertise and granular reach.

Auctree is continuously expanding its offering in multiple directions. Its platform helping sellers increase sell-through ratios. The company is reaching a growing demand base by tapping both “buy-to-let” and “buy-to-live” investor profiles. Sustained investment in tech and product will allow for increasingly efficient matchmaking and transaction execution. In the medium run, the company plans to expand to other European geographies and cater other sources of distressed property supply.

An outstanding team with global ambitions

Auctree’s mission stems directly from the professional experience of its founding team. The team is uniquely qualified to launch this venture by combining industry and company building expertise, a broad network and credibility among key players. Founders have delivered outstanding traction in a short timeframe and their ambition to build an international leading platform is hardcoded in their DNA. At Samaipata are deeply excited to support this young and ambitious team in taking this market by storm!

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At Samaipata we strive to partner with daring early-stage founders and to support them in taking their business to the next level.

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