Real estate firm Tishman Speyer recently announced that its first blank check company, TS Innovation Acquisition (NASDAQ: TSIA), is considering listing real estate technology company Latch on the stock exchange.
However, it doesn’t seem like Tishman Speyer is happy with just one successful IPO from a specialist acquisition company. The company recently completed an IPO for its second SPAC, Tishman Speyer Innovation II (NASDAQ: TSIB.U). In this fool live Video clip, recorded on March 8, Fool.com contributor Matt Frankel, CFP, and Focus on industry Host Jason Moser explains why this might be a SPAC to watch.
Jason Moser: Let’s start the conversation with the first one here, Tishman Speyer Innovation II Corp. Ticker is TSIBU. Explain to me what interested you so much about Tishman Speyer Innovation II?
Matt Frankel: Well, if you like Latch, this might be a SPAC for you, because it’s kind of the sequel. This is Tishman Speyer’s second SPAC. This was originally supposed to be an increase of $ 250 million, eventually they had to increase the $ 300 million for demand. It was quite impressive. Tishman Speyer, if you’re unfamiliar with this is a New York-based real estate development fund. They build, they manage, they develop real estate. To quote one of their great properties in New York, my kid, then I’m not sure if anyone has heard of Rockefeller Center.
Moser: [laughs] I heard about it.
Frankel: Yeah, that’s one on their list. They have big properties in Paris, in Shanghai, in the process of developing a new big complex in San Francisco. They are a big deal on real estate, just to say the least. They have roughly $ 56 billion in properties under management, over 82 million square feet in some of the world’s most expensive cities. It’s a pretty big wallet. Their CEO, Rob Speyer, whom Luke was talking about, he has been known for a long time, is also the CEO of this PSPC. Like most PSPCs, they’re very vague about what they’re targeting, but they’re targeting what’s called a proptech investment, which is what Latch is, which is short for real estate technology. If you think they’ve done a good job finding a company like Latch to IPO, and think they’re going to do it again, you can now get the second version of their PSPC, for just over $ 10. $ net asset value. Just before we speak, it’s trading at 10.25 a unit, which includes our common stock plus that 1/5 of a warrant. You actually get the common stock for just under $ 10, which is really good.
Frankel: If you think they are going to repeat their progress with Latch, there are a lot of proptech companies out there that could make good candidates. It is a way to participate inexpensively in a management bet. The stock symbol for this is TSIBU. If you remember the units for the first one, the one that makes Latch public, was TSIAU, so it was SPAC A, it’s SPAC B. But official maintenance Tishman Speyer Innovation Corporation II.
Moser: Do you have a timeline? Do you have an idea? I mean, I know Latch, obviously Luke was clear on the timeline there. Do you have any idea of a timeline for this particular launch, this second release?
Frankel: Well, it’s worth mentioning this one which just launched in February.
Moser: Oh, I mean, I guess not started. Maybe that’s the wrong word, the target they might be looking for.
Frankel: Sure. The IPO took place in February. This is in fact only traded in the form of units.
Moser: To the right.
Frankel: SPACs are not divided into ordinary shares and separately traded warrants for 52 days after the IPO. Don’t ask me why it’s 52 days, that’s right. But then, the goal being to answer Jason’s questions, since they just wanted in public in February, they have a two-year horizon to find an acquisition target. Most SPACs don’t take nearly the full two years. Lately, it took three, four, sometimes six months to find an acquisition target with these big PSPCs like Tishman Speyer. But it can take up to two years. PSPCs are great investments for people who are patient and who really believe in certain managers. I’m guessing in this one you can hit a little over that $ 10 IPO price. Yet it does not trade at a premium. I mean, the tech fix over the last couple of weeks has also hit the PSPC market pretty well.
Frankel: Which is good if you’re looking to get into some of those PSPCs that don’t have any offers yet. Because you get them much closer to their NAV than they were a week or two ago. This might be a good time to think about some of them, even if they don’t know what business you’re buying yet, their managers have good backgrounds, so I’m gonna go.
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