Predium secures 4.5 million euros for ESG management platform

Munich-based PropTech startup Predium receives €4.5 million in funding to expand its ESG management platform for the real estate industry and meet increasing regulatory requirements.

Munich - Predium, a startup that develops ESG management solutions for the real estate and finance industry, has successfully closed a seed financing round of 4.5 million euros. The round was led by UVC Partners, and existing investors such as b2venture have increased their participation. Other investors include Mutschler Ventures and well-known business angels such as Joachim Drees (Drees & Sommer, MAN), Alexander Schwörer (PERI), Heike Gündling (Bilfinger, 21st Real Estate) and Maximilian Viessmann (Viessmann Group). The founders of Presize are also participating in the round. The funds will be used to expand Predium into the leading European ESG management platform for the decarbonization of real estate and to further develop the market.

"ESG is a risk factor for real estate value. Buildings often lack an up-to-date carbon footprint. At the same time, the question arises as to which refurbishment measures should be carried out and when.

Jens Thumm, co-founder and managing director of Predium

The PropTech start-up was founded in 2021 by Jens Thumm, Mohamed Ali Razouane and Maximilian Körner. Predium's platform enables the simple calculation of ESG balances for buildings and the creation of renovation roadmaps to reduce CO2 emissions, including investment calculations and automated reporting. Just two years after its foundation, Predium has already managed to establish its product on the market. Its client portfolio includes companies such as Deutsche Investment Group, B&L Group, Tattersall Lorenz, Valon and Pamera Real Estate Partners.

Increasing regulatory hurdles

The German real estate market is under increasing regulatory pressure as the EU's Disclosure Regulation obliges portfolio holders to disclose information about their ESG practices and risks. This particularly affects the environmental aspect and forces real estate owners to take measures to reduce their carbon footprint. Ernst & Young estimates that around 90% of decision-makers in the real estate industry are affected by this regulation. They have the choice between selling their properties at a reduced price or implementing remediation measures to preserve the property value. A recent ruling by the German Federal Court of Justice (BGH), which obliges property sellers to disclose planned refurbishment measures, is adding to the pressure.