The State of RealTech in Asia (Taronga Ventures)

Summary

• Global capital providers and pension funds are demanding that real estate asset managers adopt technology to lower costs and reach carbon neutrality by 2028-30.p.1
• Leading real estate institutions are adding technologists to their boards and having innovation heads report directly to the CEO.p.2
• Taronga Ventures joined a syndicate including Amazon's Climate Pledge Fund and Microsoft aiming to remove 500 megatonnes of carbon dioxide annually by 2030.p.3
• Allume Energy provides a rooftop solar system that yields an average 40% reduction in grid energy for multi-dwelling end users.p.3
• Research indicates that circa 60% of global real estate technology capital has been invested into Asia.p.3

Key insights

1. Global capital providers are pushing real estate asset managers to implement innovation alongside sustainability goals.p.1
2. Corporate resistance to technology has eroded as innovation became essential for recovering from COVID-19.p.1
3. Real estate stakeholders in Asia are turning to tech solutions driven by tenant demand and competitive pressures.p.2
4. Implementation remains the primary challenge for institutions due to required cultural and skill shifts.p.2
5. Property technology adoption serves as an insurance policy and key differentiator to attract institutional capital.p.2
6. Data collection is vital for real estate tech implementors to measure performance against ESG targets.p.3
7. Asia accounts for circa 60% of real estate technology capital investment globally.p.3
8. Institutional investors are adopting ecosystem strategies by combining internal skillsets with external fund investments.p.3
9. 'Go it alone' corporate investment strategies that aim to block competitors are ineffective compared to ecosystem collaboration.p.4
10. Proptech and RealTech have transitioned from a niche asset class into a mainstream component of venture capital portfolios.p.4