Predium secures €4.5 million for ESG management platform

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

Munich , Germany - Startup Predium, which develops solutions for ESG management in the real estate and finance industry, has successfully closed a €4.5 million seed funding round. 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 financial resources will be used to develop Predium into the leading European ESG management platform for decarbonizing real estate and to further develop the market.

"ESG is a risk factor for real estate value. Often, an up-to-date carbon footprint of buildings is missing. At the same time, the question arises as to which refurbishment measures should be carried out at what point in time.

Jens Thumm, co-founder and managing director of Predium

The PropTech startup, was founded in 2021 by Jens Thumm, Mohamed Ali Razouane and Maximilian Körner. Predium's platform enables the easy determination of ESG balances of buildings as well as the creation of renovation roadmaps to reduce CO2 emissions, including investment calculations and automated reporting. Just two years after its founding, Predium has managed to establish its product in the market. Companies such as Deutsche Investment Gruppe, B&L Gruppe, Tattersall Lorenz, Valon and Pamera Real Estate Partners are part of its customer portfolio.

Regulatory hurdles rising

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