Miami-based REEF providing hardware, software and management services for parking lots has secured $700 million from Softbank. It has since expanded its vision while remaining true to its basic business model. While it still manages parking lots, it now it adds infrastructure for cloud kitchens, healthcare clinics, logistics and last-mile delivery, and even old school brick and mortar retail and experiential consumer spaces on top of those now-empty parking structures and spaces.
REEF leases most of the real estate it operates and upgrades it before leasing it to other occupants (or using the spaces itself). In part that’s because REEF does operate its own businesses on the premises and works with startups to provide actual goods and services that are location dependent for their success and revenue generating.
The money will be used to scale from its roughly 4,800 locations to 10,000 new locations around the country and to transform the parking lots into “neighborhood hubs,” according to Ari Ojalvo, the company’s co-founder and chief executive.
SoftBank and Mubadala are joining private equity and financial investment giants Oaktree, UBS Asset Management and the European venture capital firm Target Global in providing the cash for the massive equity financing. Meanwhile, REEF Technology and Oaktree are collaborating on a $300 million real estate investment vehicle, the Neighborhood Property Group.