REEF Raises $1 Billion to Build Proximity Platform to Support the On-Demand Economy
Tuesday, Nov 03, 2020 - 7 mins
- Mubadala leads $700 million growth equity round with SoftBank, Oaktree, UBS Asset Management and Target Global
- REEF and Oaktree launch $300 million infrastructure partnership: The Neighborhood Property Group
- By leveraging its distributed real estate network and technology, REEF has built a proximity-as-a-service platform to build Neighborhood Hubs.
MIAMI, Florida — REEF announced today a $700 million growth equity funding led by Mubadala Investment Company’s financial investment arm, Mubadala Capital. SoftBank Vision Fund, funds managed by Oaktree Capital Management, L.P., UBS Asset Management and Target Global also participated in the round. Additionally, and separately, REEF and Oaktree established Neighborhood Property Group, a $300 million joint infrastructure vehicle to acquire strategic real estate assets. Neighborhood Property Group is expected to make long-term investments in neighborhood infrastructure in order to provide REEF’s innovative proximity services to communities across the U.S.
REEF’s mission is to connect the world to your block. REEF is transforming its distributed real estate network of more than 4,500 parking lots and garages into Neighborhood Hubs, leveraging the power of proximity to connect people and neighborhoods to locally curated goods, services, and experiences.
With more people living in cities than ever before, and the challenges that arise from modern consumption patterns, REEF sees an opportunity to reimagine more sustainable and neighborhood-centric economies.
REEF is leveraging its distributed real estate network and technology to create a proximity-as-a-service platform. Whether a growing local business, or a global brand, REEF provides the platform entrepreneurs and businesses need to deliver their products locally and at scale.
With over 100 Neighborhood Kitchens across 20+ North American markets, REEF is empowering local restaurants and national brands to launch and expand their delivery service operations under a seamless revenue share partnership—from local favorites like Michelle Bernstein in Miami, fast growing mission-driven brands like Burger-Fi, or David Chang’s Fuku. By providing seamless access to a distributed network of Neighborhood Kitchens, handling all costs, operations, and food preparation, REEF provides a turnkey, zero capital investment solution for restaurateurs looking to launch or scale their business.
In addition to its growing Neighborhood Kitchens business, REEF has announced partnerships with DHL for micro-fulfillment and last-block e-cargo bike delivery, national COVID testing and pop-up clinics with Carbon Health and BioReference, and vertical urban farming with Crate to Plate.
In addition to using the growth capital to continue expanding its real estate network of 4,500+ parking lots and build upon its technology stack, REEF has also launched a pilot initiative to allocate $10,000 marketing grants and dedicated support up to 100 local, minority, and women-owned restaurants to grow their business on REEF’s Neighborhood Kitchens platform. REEF is currently accepting applications at nbrhd.com.
Ari Ojalvo, CEO of REEF, said:
“We are excited for this next stage of growth and are committed to continue learning, listening and working with our communities to reimagine urban real estate into localized and networked infrastructure that entrepreneurs and cities can use to deliver goods and services sustainably and directly to our neighborhoods. By working together, we can reimagine and rebuild our urban spaces for people, not just cars, and help our cities become more sustainable and inclusive centers of community and opportunity.”
Philippe Saint-Just, Co-Founder and Head of Product at REEF, said:
“This round of funding provides an exciting opportunity for our team to continue expanding the REEF digital platform. We’re especially proud to be able to provide local restaurants with solutions that they need to thrive.”
Aziz Ihsanoglu, Co-Founder and Head of Strategy at REEF, said:
“By leveraging our distributed real estate network of over 4,500 parking locations, we have created a proximity-as-a-service platform for businesses both big and small in our communities.”
Adib Mattar, the Head of Mubadala Capital’s Private Equity business, said:
“Identifying entrepreneurs who create and leverage their businesses to first articulate a vision and then deliver on it is central to our investment approach. The concept of transforming infrastructure to better connect the origin of production with the destination of consumption resonated with us. REEF is strongly positioned to serve communities where they have key infrastructure, proving essential to food delivery, package delivery, grocery delivery and healthcare.”
Josh Connor, Co-Portfolio Manager of Oaktree’s Infrastructure Investing Strategy and Chairman of Neighborhood Property Group, said:
“As long-term investors who specialize in value-add transportation infrastructure, REEF fits our thesis that core parking facilities should be augmented with technology to transform these core assets into mobility infrastructure hubs. These alternative uses support communities with critical last block logistics solutions such as food delivery, micro-mobility, same-day parcel delivery, essential groceries and electric charging infrastructure.”
Ervin Tu, Managing Partner of Softbank Investment Advisers, said:
“We believe REEF’s conversion of city parking lots into urban logistics hubs makes them much more useful than in their current form. As we have witnessed during the pandemic, proximity to the consumer is increasingly important in today’s economy. We’re excited about management’s vision of transforming and revitalizing the urban center, and are confident in REEF’s ability to execute.”
Perry Offutt, Head of Infrastructure Americas of UBS Asset Management, said:
“On behalf of our UBS-managed account with a US pension plan, we are proud to be an investor in REEF and support the company’s continued growth. We believe the 15-minute city is the future and REEF is the platform to deliver it.”
Ben Kaminski, Partner at Target Global, said:
“By connecting goods, services, and experiences to the neighborhood, Ari and his team are solving the most pressing challenges within cities. This fundraising round is a testament to the vision and operational excellence of REEF as they continue to redefine city logistics and transportation. We are very excited to be working with the team, as REEF continues to scale globally.”
REEF’s mission is to connect the world to your block. We transform underutilized urban spaces into neighborhood hubs that connect people to locally curated goods, services, and experiences. With an ecosystem of 4,500+ locations and a team of 15,000 people, REEF is the largest operator of mobility, logistics hubs, and neighborhood kitchens in the United States. Together, we are leveraging the power of proximity to keep our communities moving forward in a sustainable and thoughtful way.
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