RXR, created and led by New York-based developer Scott Rechler, had been on the hunt for a promising PropTech company that they had hoped to take public with a SPAC merger. However, after almost two years of searching, RXR appears to have come up empty. On Tuesday, RXR revealed in a Securities and Exchange Commission filing that the company intended to dissolve its blank check company, RXR Acquisition Corp, that RXR had established in 2021 for the sole purpose of effecting a merger. With the acquisition arm’s dissolution comes a return of $345 million to company shareholders. Investors will receive a return of $10 per share as a result of the redemption.
RXR claims that it had “several opportunities to acquire various startups with strong business models and momentum,” but in almost two years, RXR never did find their golden goose. Instead of somberly admitting defeat, the real estate firm characterized the dissolution as a success, claiming it avoided acquiring firms whose values that looked good on paper but were either inflated or about to collapse. The liquidation of RXR’s special purpose acquisition business, which had been looking for a proptech startup to transform into a publicly traded company, was accelerated last week thanks to a shareholder vote.
The news that RXR is abandoning all hope for the perfect PropTech startup comes in stark contrast to the momentum the PropTech industry has experienced in recent years. At the acquisition arm’s inception, RXR had hoped to raise $250 million, but hype for the PropTech industry had pushed those targets up by almost another hundred million dollars. Still, RXR says it will continue to invest in “innovative” PropTech companies.