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An Australian entrepreneur has launched one of the country’s first real estate venture capital funds to support and grow a number of key service providers underpinning the real estate industry.
Chris Rolls, the founder of Rental Express, Queensland’s largest residential property management business, has now launched PieLab Venture Partners, which is raising $20 million to invest in businesses that provide services to the real estate sector.
“The PieLab Real Estate Industry Venture Capital Fund 2016 will invest in a small handful of the most promising service providers, helping them grow so they can service real estate agencies across Australia and even overseas,” Mr Rolls said.
“There’s a lot of interest from investors inside the industry, so our focus will be on raising funds predominantly from people who own real estate agencies to invest in businesses that provide the services to these same agencies,” he said.
“It’s a strategy that will see investors lining up to be customers of the businesses the fund has invested in, increasing returns for the fund and in turn those that invest in it – like investing in Coles, then buying a bag of oranges from Coles.”
In 2001 Mr Rolls purchased a Harcourts office in Paddington, Brisbane, for $6,000, and built it up to become one of the largest Harcourts real estate sales businesses in Australia.
In 2005 he was Harcourts’ top Queensland auctioneer.
In 2006 he started Rental Express, one of the first specialist property management businesses in Australia, which over the course of 10 years he grew to become Queensland’s largest residential property management business, with over $1.5 billion worth of real estate under management across 300 suburbs.
Mr Rolls sold Rental Express in December 2015 to Paul Little, founder and chairman of Little Real Estate.
“I’ve been in the industry for over 10 years, and it’s still very ‘cottage’ and labour-intensive. That’s why I think it is important to invest in technology and consolidation with a focus on improving efficiencies, services and processes for the sector,” Mr Rolls said.
The PieLab Real Estate Industry Venture Capital Fund is calling for expressions of interest from the key influencers among Australia’s residential real estate agencies. The fund will invest in start-ups across a range of industries, from software providers to compliance services.
“Unlike normal venture capitalist funds, which provide financing and expertise, PieLab will also be able to provide a customer base to their investee businesses,” Mr Rolls said.
“And the icing on the cake is the structure, with the fund having submitted its application to become a registered Early Stage Venture Capital Limited Partnership, which, if granted, will result in the profits to investors being income and capital gains tax exempt,” he said.
In addition to his ventures in the real estate industry, Mr Rolls founded SCODY Performance Wear, whose products have been worn by athletes at multiple world championships and the Olympic Games.
In his 20s he founded First Class Accounts, a specialist bookkeeping organisation.
[Related: Rental Express to buy RUN Property for $65m]
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