Equiem, Australia’s pre-eminent provider of tenant engagement solutions for commercial real estate, has acquired JAGONAL, a fast-growing web platform that allows owners to list office space available to lease or buy.
Equiem (www.equiem.com.au) is one of Australia’s proptech success stories. Since launching in 2011, Equiem’s platform has been adopted by 9 of the 11 largest Australian REIT’s, who use Equiem technology and staff to better connect with occupants, provide access to convenient services and ultimately, make tenants “stickier” or less likely to exit when their lease expires. The platform now has over 50,000 users, across Equiem’s portfolio of more than 100 Premium and A grade assets, comprising of approximately 4.1 million square metres of premium and A-grade office.
Founded in 2013 by alumni of the REA group, JAGONAL (www.jagonal.com.au) has indexed 65 per cent of vacant office space Australia-wide. It allows tenants and tenant advisors to search 4,500 commercial buildings for office space and filter for facilities such as parking, transport, childcare and end-of-trip facilities, which have become increasingly important in the competition for top-quality tenants.
Prior to its purchase by Equiem, JAGONAL showed solid traction with clients such as Charter Hall, GPT, Lend Lease and Investa, all using the JAGONAL website to list their available space.
“This is a really exciting opportunity, which provides us with greater technology capability, talent and the opportunity to offer our clients more tools to help them retain and attract tenants. This transaction creates a huge opportunity for value uplift for both businesses going forward,” says Gabrielle McMillan, CEO of Equiem.
JAGONAL will be owned and controlled by Equiem Holdings and will be supported by Equiem’s operational and business development resources. JAGONAL will otherwise continue to operate in its own right.
“We believe JAGONAL offers the Group great potential. The JAGONAL team have done a terrific job developing market leading technology, about 50% of which has yet to be released, so there’s a lot of untapped upside,” Ms McMillan said.
“As a result of the acquisition, the JAGONAL business model will be strengthened by Equiem’s disciplined operational practices and balance sheet.
“The JAGONAL platform also aligns very nicely with work we've been doing on a new space bookings module. With tenants demanding more flexibility and space on demand - landlords and managers need low cost, efficient ways of transacting. The work done to rent a boardroom or a single desk needs to be much less than a 10,000 sqm deal. Bringing JAGONAL into our group means we can get that solution into the hands of our clients much faster and with a more sophisticated feature set.
“The acquisition has also set JAGONAL up for accelerated growth. We are very confident the acquisition will provide many synergies, which will benefit all customers. We can now provide an end to end platform encompassing property websites, promotion of vacant inventory, tenant engagement, community and services, and data from the combined platforms to provide meaningful and powerful insights,” said Ms McMillan.
Equiem has purchased all JAGONAL IP, assets and technology, including its patent-pending 3D mapping engine, which allows users to virtually see the physical location of any listed office building and enjoy a panoramic view from any window in the tenancy, and it’s daily commercial real estate newsletter. The JAGONAL founding team of Serge Kotlyarov, Andrew Brown and Max Sim have indicated they will continue with the business, supported by the wider Equiem Group.
The purchase price of the JAGONAL assets has not been disclosed.
“We plan to take a very light touch approach to integrating the businesses initially, while we review the JAGONAL business model, technology and strategy. It will be business as usual for both companies, with JAGONAL’s team able to return their focus on growth and the product without the distraction of capital raising,” Ms McMillan said.