High-Return PropTech Investments Hedged by Low-Risk Real Estate Assets

SH Proptech

Investment Strategy

At SH PropTech, we blend cutting-edge technology with solid real estate investments, creating the world's first 'risk-free' investment into tech startups. Our strategy leverages the intrinsic value of real estate, enabling us to venture into high-risk prop-tech investments while safeguarding against capital loss.

By systematically integrating and capitalizing on the value uplift of real assets, we have developed a unique investment formula. This model uses hard assets as a hedge against the typical venture capital risk where 9 out of 10 tech startups fail.

Hedging real estate assets
Investing profits into the development of proptech products

At SH PropTech, we blend cutting-edge technology with solid real estate investments, creating the world's first 'risk-free' investment into tech startups. Our strategy leverages the intrinsic value of real estate, enabling us to venture into high-risk prop-tech investments while safeguarding against capital loss.

By systematically integrating and capitalizing on the value uplift of real assets, we have developed a unique investment formula. This model uses hard assets as a hedge against the typical venture capital risk where 9 out of 10 tech startups fail.

SH Proptech

Investment Formula

Strategy

Investment Formula

1

We invest in real estate, particularly in disused office spaces that can be repurposed into mixed-zone office and affordable residential areas.

2

The first step in adding value involves repurposing each project by utilizing permitted development rights to redesign and rezone the building for mixed-zone use.

3

The gains from the value-uplift are then allocated as seed investments to our software startups, creating a virtuous cycle of risk mitigation with significant upside potential.

4

Over time, some of these products will generate substantial value, increasing the portfolio's total worth, while the initial base value remains secure, eliminating the risk of total loss.

5

This formula enables the creation of above-average margins over time while continuously hedging the risk of total loss through hard assets.

Real Estate Assets
+Value-Uplift
PropTech Seed Investments
X
X
X
+ Potential Proptech Value Increase
SH Proptech

Investment Structure Example

Example 1
  • NAV: £7.5m
  • Investment Units: 150 Units of £50k each
    50% of Proptech Project Equity split into 150 warrants
    50% equity retained by founding team
  • Additionally 1 units holds 1/1000 share of PropTech Portfolio
  • PropTech Portfolio: 50% of 10.000 shares belong to units and 50% to owners and creators of PropTech projects
Example 1
  • NAV: £7.5m
  • 150 units of £50k each
  • Additionally 1 units holds 1/1000 share of PropTech Portfolio
  • PropTech Portfolio: 50% of 10.000 shares belong to units and 50% to owners and creators of PropTech projects
Example 2
  • £75m value
  • 1,500 units of £50k each
  • Additionally 1 units holds 1/10000 share of Proptech Portfolio
  • PropTech Portfolio: 50% of 10.000 shares belong to units and 50% to owners and creators of PropTech projects
Real Estate Asset Portfolio
Investment Units: 1,500
Face Value per Unit: £50,000
Stock Warrants per Unit: 1
Total NAV: £75m
Real Estate
Asset Portfolio
Total NAV: £75m
Investment Units: 1,500
Face Value per Unit: £50,000
Stock Warrants per Unit: 1
Seed Investments:
£25m
Stock Warrants:
1,500
Proptech Portfolio
Equity Shares: 3,000
Stock Warrants: 1,500
Proptech Portfolio
Equity Shares: 3,000
Stock Warrants: 1,500
50% of equity hold by founding teams
SH Proptech

Investment Vehicle I

Investment Vehicle
SH PropTech I
Investment Unit:
£50,000
Real Estate Asset I
LivWork I
In the UK, an abundance of abandoned office buildings and a shortage of affordable housing and economical office options create the substantial opportunity that Liv work intends to address. Permitted Development Rights (PDR) legislation facilitates the rezoning of these spaces to merge commercial and residential uses, allowing us to capitalize on this regulatory change.
Investment Units: 150
Initial NAV: £5m
Current NAV: £7.5m
Value Uplift: £2.5m
Learn more
Proptech Equity Share via Warrant per Unit:
1/300
Proptech Equity Share via Warrant per Unit:
1/300
PropTech Project I
Matching Platform
We harness state-of-the-art AI and big data analytics to innovate within the property sector, an industry sorely in need of modernisation. Our technology is transforming how property owners, developers, and agents connect with the most suitable counterparts, streamlining processes and optimising outcomes through precision matching.
Seed Invest: £2.5m
Learn more
LivWork Project I

Low-risk investments into value-adding conversion of currently disused office building’s

  • Repurpose the disused buildings from the 60s and 70s
  • Create projects where living and working are synergetic
  • Allow for retraining centres to repurpose the lives of individuals lost in the tech revolution
  • Utilise technology at every step of the way from sourcing the projects to the buildings functionality
  • Use technology to create environments where people can enjoy and prosper

Identify Demand

Utilising the proprietary technology harnessed within the platform which we have created and is held under our sister company, we are able to create the perfect matches for our current and future LivWork projects.

Negotiate the right terms

We Work was ultimately unsuccessful due to the contracting formula they deployed with the freeholders of the buildings creating  a server lack of alignment in relation to revenue LivWork has crafted a contracting formula which creates alignment ergo growth

Develop the Property

Practicality over luxury, usability as apposed to over spending. And most importantly Keep it simple!

Rent out

Income is derived from, three cornerstones, while a proportion of the income for each project is underwritten by government or/and large covenant

1. Residential units
2. Commercial work pods
3. Retraining centres
Current Status
Project 1 has been purchased and is mid design, yields are double digit.
Pipeline is currently standing at 5 additional projects with some 200,000 sq ft of floor space
SH Proptech

Executive Team

William Spencer
Director | Real Estate Assets
William is a prominent figure in the UK's thriving Vulnerable Care sector, serving as the driving force behind SH Care. As the head of SH Care, he has led a carefully crafted real estate framework, renowned for its effective risk mitigation strategies, which has garnered significant investment from private wealth and the country's leading institutions. Before his tenure at SH Care, William directed a development program at a respected Swiss family office, overseeing the planning and execution of 24 projects across various sectors throughout continental Europe, culminating in a substantial exit in 2022. William co-founded SH Proptech alongside Hans, bringing his extensive expertise in real estate to the venture. At SH Proptech, he is the General Director, primarily responsible for the development and management of the hard real estate assets.
Hans Kaufmann
Director | Proptech Products
Hans, co-founding SH Proptech alongside William, brings in eight years of experience in digital product development. He holds an MSc in Economics and International Management (CEMS MIM), with specializations in Statistics, Behavioral Science, and Financial Modeling from the Vienna University of Economics, NOVA SBE Lisbon, FGV Sao Paulo, and the Norwegian School of Economics. After university, Hans gained experience in strategy and technology consulting before pivoting into software development, where he built numerous iOS apps alongside Brendon. Later, he worked as an independent freelance business analyst and web developer, notably collaborating with William on a substantial real estate project in Basel. After rejoining William at SH Care, they co-founded SH Proptech. At SH Proptech, Hans is responsible for the Proptech products, focusing on data analysis, and product innovations.
Brendon Blackwell
Head of Software Development
Brendon is a full-stack and dev-ops software engineer with over 14 years of experience. In recent years, he worked at Klarna as a senior engineer, contributing to the Kubernetes on Azure Runtime team and the Merchant Portal Platform team. His expertise extends beyond technical skills, encompassing corporate recruitment and project management. Proficient in a wide range of technologies and languages, including Golang, Node.js/TS, Python, Bash, SQL, Java, Groovy, Objective-C, Swift, WebGL, PHP, Avro, and Kubernetes, he has a robust background in database management and cloud providers. Additionally, Brendon played a key role in Klarna's Javascript hiring pipeline, assessing candidates for technical ability and suitability. At SH Proptech, Brendon leads the software development teams, driving forward the company's technological advancements.
LivWork Project I

Low-risk investments into value-adding conversion of currently disused office building’s

  • Repurpose the disused buildings from the 60s and 70s
  • Create projects where living and working are synergetic
  • Allow for retraining centres to repurpose the lives of individuals lost in the tech revolution
  • Utilise technology at every step of the way from sourcing the projects to the buildings functionality
  • Use technology to create environments where people can enjoy and prosper

Identify Demand

Utilising the proprietary technology harnessed within the platform which we have created and is held under our sister company, we are able to create the perfect matches for our current and future LivWork projects.

Negotiate the right terms

We Work was ultimately unsuccessful due to the contracting formula they deployed with the freeholders of the buildings creating  a server lack of alignment in relation to revenue LivWork has crafted a contracting formula which creates alignment ergo growth

Develop the Property

Practicality over luxury, usability as apposed to over spending. And most importantly Keep it simple!

Rent out

Income is derived from, three cornerstones, while a proportion of the income for each project is underwritten by government or/and large covenant

1. Residential units
2. Commercial work pods
3. Retraining centres
Current Status
Project 1 has been purchased and is mid design, yields are double digit.
Pipeline is currently standing at 5 additional projects with some 200,000 sq ft of floor space
PropTech Project I

Property Analytics & Matching Software

  • Repurpose the disused buildings from the 60s and 70s
  • Create projects where living and working are synergetic
  • Allow for retraining centres to repurpose the lives of individuals lost in the tech revolution
  • Utilise technology at every step of the way from sourcing the projects to the buildings functionality
  • Use technology to create environments where people can enjoy and prosper

Identify Demand

Utilising the proprietary technology harnessed within the platform which we have created and is held under our sister company, we are able to create the perfect matches for our current and future LivWork projects.

...

We Work was ultimately unsuccessful due to the contracting formula they deployed with the freeholders of the buildings creating  a server lack of alignment in relation to revenue LivWork has crafted a contracting formula which creates alignment ergo growth

...

Practicality over luxury, usability as apposed to over spending. And most importantly Keep it simple!

...

Income is derived from, three cornerstones, while a proportion of the income for each project is underwritten by government or/and large covenant

1. Residential units
2. Commercial work pods
3. Retraining centres
Current Status
Project 1 has been purchased and is mid design, yields are double digit.
Pipeline is currently standing at 5 additional projects with some 200,000 sq ft of floor space