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R-LABS gets $3.5M to invest in real estate services, tech innovators

Funding will go to startups tackling housing affordability, climate resiliency, building optimization and other critical issues

George Carras, founder and CEO of R-LABS. (Courtesy NorthPR)

R-LABS Canada Inc. has raised an additional $3.5 million to help it invest in firms tackling the real estate sector's most critical issues, including housing affordability.

The venture builder company specializes in the real estate sphere, and has already invested in a number of businesses including prefabricated housing manufacturer Assembly Corp. and mortgage accelerator OneClose Inc. 

R-LABS raised the new funds in a round led by Mississauga-based engineering firm Hatch, with existing investors Oxford Properties, Dorsay Development Corp. and LandSure Systems Ltd. also participating.

The investment will add engineering talent to the organization, which will accelerate "bold ideas" and unite innovators, institutions, industry leaders and entrepreneurs, George Carras, founder and CEO of R-LABS, said in the announcement.

“The challenges in real estate, housing, resilience, and economic productivity are not what is defining Canada today. What is defining us is how we are choosing to tackle them,” he said.

In an email exchange with RENX Homes, Carras said prefabrication can reduce construction schedules, cost and carbon emissions compared to conventional homebuilding. But supporting companies like Assembly will require "a full ecosystem," such as developing end-to-end approval companies that can streamline the complex regulatory landscape, and alternative financing products designed for citizen developers.

R-LABS was founded in 2018 as a partnership between companies, institutions, industry organizations and entrepreneurs. It has offices in Toronto and Vancouver. Carras had previously founded RealNet Canada, a real estate investment and development market information company, which was sold to Altus Group in 2014.

“R-LABS can partner with entrepreneurs and allow them to be their best selves,” Carras told RENX in a previous interview about the firm.

R-LABS' fostered companies

Another solution R-LABS is exploring to tackle Canada's high housing costs is shared ownership of a property, called fractional ownership. It could be used across different housing types, such as workforce housing, through investment structures "that create multiple pathways to homeownership and wealth building for Canadians who have been shut out of traditional real estate markets," Carras said. 

Other problems that R-LABS seeks to address are climate resiliency, “complete communities” and building optimization.

For the resiliency of the for-sale housing sector, that includes NOAH Intelligence Inc. The Toronto-based company models flood risk across Canada, a threat that is growing in some geographies as a consequence of global warming. Armed with the information from NOAH, property owners, insurers and lenders can take preventive steps to mitigate flood damage.

Another innovator is Toronto-based HomePorter Inc., which built a digital home inspection platform that allows for field work to be done remotely.

“As entrepreneurs with a technical soul, Hatch welcomes the opportunity to contribute to the success of R-LABS,” John Bianchini, chair and CEO of Hatch, said in the announcement. “By joining R-LABS’ ecosystem, we’re unlocking new opportunities alongside other leading and innovative real estate companies making real impacts, helping solve climate change and realizing better places and outcomes for people.”

Geoffrey Grayhurst, CEO of Dorsay, said the company’s investment in the venture builder reflects its commitment to advancing “innovative ideas that strengthen communities and shape a more resilient future for the real estate industry.”

On R-LABS’ website, it has a list of other investment priorities, including addressing co-ownership and co-living, the shortage of construction and trades labour, and housing supply and affordability. R-Labs has not yet revealed the partner companies it will be supporting in these areas.



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