Tribe Property Technologies Inc said it has agreed to acquire a portfolio of rental and commercial property management assets from NAI Commercial Okanagan, strengthening its property management services in the Interior region of British Columbia.
The property tech group said the acquisition expands its management of single-unit rentals, rental-purpose apartment buildings, as well as its commercial building management portfolio. The company has two offices already in the region in Kamloops and Kelowna and has deployed its platform in several communities.
"This acquisition supports the strengthening of our service delivery in the high-growth Interior region of British Columbia, opening additional revenue streams while bringing efficiencies through the digitization of these communities,” CEO Joseph Nakhla said in a statement.
WATCH: Tribe Property Technologies acquires property management portfolio in South-Eastern B.C.
“This latest acquisition is a continuation of activities that identify great accretive assets that expand our footprint and digital services in under-served markets,” he added.
In exchange for the assets, Tribe has agreed to pay NAI Commercial Okanagan $250,000, with $150,000 payable on the closing date, $50,000 in common shares of Tribe, and the remaining $50,000 due 90 days following the closing date subject to certain adjustments based on revenue and customer contracts.
"We are excited to be joining an innovative company that is solving traditional challenges with new technologies," said NAI Commercial Okanagan principal Tony Parmar.
"Tribe has figured out a model to build the infrastructure required to provide tech-enabled services and elevate the rental property management industry, and we wanted to be a part of that journey."
The company said the transaction is expected to close on or about November 1 and is subject to receipt of TSX Venture Exchange approval and satisfaction of customary conditions and documentation.
On closing, Tribe said Parmar will join as a senior member of its Okanagan team.
Tribe Property Technologies aims to buy highly accretive targets in the fragmented North American property management industry and transform them via digitization.
Its platform decreases customer acquisition costs, increases retention, and allows for the addition of value-added products and services.
Tribe's three revenue pillars are made up of software and service (recurring licensing and management fees), transactional (rent or condo fees, banking services, lease-ups), and digital services and partnership (smart building products, financial and insurance service) revenue.
Contact the author at stephen.gunnion@proactiveinvestors.com