SAN FRANCISCO (PRWEB) June 24, 2020
OMERS Ventures has led the USD$10.5 million Series A extension funding round for residential real estate company, Landed, bringing the company to a total of just over USD$22 million raised in venture capital. Existing investor, Initialized Capital, also participated. The venture capital dollars are in addition to the over USD$50 million in private equity real estate capital Landed has raised for its down payment program. OMERS Ventures Managing Partner Michael Yang will join the Landed board.
Landed offers a shared equity down payment program for essential employees – starting with educators – who wish to buy homes in the communities where they work, across the United States. Landed's down payment program invests alongside employees in education to help them reach a 20% down payment. Landed's funds, up to $120,000 per household, come in the form of an equity investment, meaning that homebuyers share in a portion of the gain – or loss, if any – of the value of the home once it's sold or refinanced.
The U.S. housing market increased by USD$1.9 trillion in 2019 to a total value of USD$33.3 trillion, with millennials at the cusp of being the largest demographic of homebuyers. Yet this group faces financial stress linked to affordability and accessibility, both of which have been exacerbated by the recent pandemic-related uncertainty. Those stresses are especially acute for educators, whose income has not kept pace with median housing costs. In response, new homeownership models have started to evolve, most notably from an emerging class of alternative financing start-ups like Landed.
“Landed has a unique mission to help essential professionals find a path to home ownership, including through its dedicated team of agents and experts,” said Michelle Killoran, OMERS Principal and proptech specialist. “We look forward to working with Jonathan Asmis and Alex Lofton, and the entire Landed team, to help the company continue to grow, while amplifying its positive impact.”
Landed co-founder, Alex Lofton, added, "Educators are part of the heartbeat of our communities – they are stable, responsible professionals that we all rely on. But unless they get financial support from mom and dad, it’s become near impossible to save for a 20% down payment while also paying rent and other expenses. Landed is changing all this by supporting those who uphold our communities: we have started with our educators and plan to extend our work to other essential professionals like healthcare workers. This investment will help us do just that.”
He continued, “We felt alignment with OMERS Ventures from the very start. There’s a wonderful synergy in knowing that they are investing on behalf of half a million employees of municipalities and local agencies. In different ways, Landed and OMERS are both working to support the financial security of essential workers.”
Residential real estate is the largest asset class in the world, and typically the most substantial investment most individuals will ever make. New funding models like those offered by Landed are a prime example of where the market is heading, not only for homeownership but also for broader financial access and security.
For more information about the Landed program, and to find out if you are eligible to apply, please go to landed.com.
About OMERS and OMERS Ventures
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with CAD$109 billion in net assets as at December 31, 2019. OMERS is a jointly-sponsored pension plan, with 1,000 participating employers ranging from large cities to local agencies, and over half a million active, deferred and retired members. OMERS members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. Contributions to the Plan are funded equally by members and employers. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers and originating and managing a diversified portfolio of high-quality investments in public markets, private equity, infrastructure and real estate.
OMERS Ventures currently manages CAD$2 billion and has made more than 50 investments in disruptive technology companies across North America and Europe. http://www.omersventures.com.
About Landed, Inc.
Landed is a San Francisco-based company helping essential professionals build financial security near the communities they serve. Landed partners with schools, colleges, districts, and community organizations to provide down payment support and homebuyer education to educators and staff. http://www.landed.com