CHICAGO - JLL (NYSE:JLL) Spark Global Ventures, the venture capital arm of real estate giant JLL, has spearheaded a Series A investment in Munich-based PROBIS, a company specializing in AI-driven financial management for real estate development. The investment, announced today, aims to fuel PROBIS' growth and bolster its cloud-based financial control solutions for the real estate sector.
PROBIS focuses on enhancing financial management of development projects by implementing advanced AI technology. Its platform seeks to provide more comprehensive financial oversight, improving cost and revenue management for real estate developers and lenders. The investment by JLL Spark is set to facilitate PROBIS' global expansion and development of new AI functionalities for multi-project controlling.
Moritz Koppe, CEO of PROBIS, expressed that JLL's involvement is a strategic move to accelerate their global expansion and improve their offerings with additional cloud-based AI features. JLL Spark invests in PropTech companies that introduce innovative solutions, and this investment in PROBIS aligns with their goal to drive digital transformation and efficiency in the real estate industry.
Sean Wright, Principal at JLL Spark in EMEA, stated that PROBIS' technology aligns well with JLL's client needs and presents a compelling investment opportunity. Dunja Nigrin, Head of Project & Development Services DACH at JLL, highlighted that combining PROBIS' AI solutions with JLL's expertise is expected to revolutionize project and development management, optimizing efficiency and cost control.
Founded in 2022, PROBIS has quickly established itself as a significant player in the real estate and finance sectors, with a track record of managing up to 1,000 projects annually. Its platform offers scalable and transparent financial process management for various stakeholders in real estate.
This Series A funding underscores the commitment of both companies to leverage technology for improved financial management in real estate. The collaboration promises to make significant strides in the industry's digitalization.
The information in this article is based on a press release statement.
In other recent news, Jones Lang LaSalle Incorporated (JLL) reported a strong Q2 in 2024, with a 12% rise in revenue to $5.6 billion and a 23% increase in adjusted diluted EPS to $2.55.
Despite a slight downturn in the global commercial real estate market, the company's workplace and property management sectors drove profitability with an 11% increase in adjusted EBITDA to $246 million.
However, JLL Technologies and LaSalle experienced revenue declines of 7% and 27% respectively due to lower bookings and a decrease in incentive fee activity.
In spite of these declines, JLL's financial position remains strong with a 19% increase in free cash flow to $236 million and $2.4 billion in liquidity. This supports the company's optimistic outlook for the latter half of the year and their increased full-year adjusted EBITDA target range. These are among the recent developments in the company.
JLL executives have noted the impact of cost reduction actions across all business segments and have addressed concerns about potential recession effects. The company's capital allocation strategy includes reinvesting for growth, reducing debt, evaluating mergers and acquisitions, and share repurchases. The company also expects an acceleration in transaction activity and plans to invest in capabilities to strengthen product offerings.
InvestingPro Insights
As JLL Spark Global Ventures invests in the innovative AI-driven financial management company PROBIS, JLL's own financial metrics and strategic moves are noteworthy. According to InvestingPro data, JLL has a market capitalization of $11.15 billion and is trading at a price-to-earnings (P/E) ratio of 29.17. Notably, the company's revenue for the last twelve months as of Q2 2024 stands at $21.75 billion, with a growth rate of 5.82%, indicating a solid financial performance.
InvestingPro Tips highlight that JLL is a prominent player in the Real Estate Management & Development industry, and its management has been actively buying back shares, showcasing confidence in the company's value. Moreover, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. Additionally, JLL does not pay dividends, which could indicate a reinvestment of profits back into the company's growth and development—aligning with the strategic investment in PROBIS.
For readers interested in a deeper dive into JLL's financial health and performance, InvestingPro offers additional tips. Currently, there are 11 more InvestingPro Tips available, providing insights that could be crucial for investors considering JLL's stock in light of its recent investment activities. These tips can be accessed through the InvestingPro platform at https://www.investing.com/pro/JLL.
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