SALE OF DELOS LIVING LLC SHARES

Industry

Health/Wellness & Real Estate

Company Type

Real Estate Health Tech

Location

US

Size

$10-20 million

Investment Type

Equity

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Helping Great Companies Grow

Overview

  • Our client is seeking to sell $10-20 million of shares in Delos, a private company
  • Delos is a wellness real estate and technology company that is transforming the lives of people around the world by creating residential and commercial spaces designed to improve health, well-being and performance
  • COVID-19 has made safety and wellness a top priority for real estate owners and tenants
  • Delos is the pioneer and global leader in the science and application of wellness technology, solutions, certification services, and programming for buildings
  • Revenues of $30.4 million in 2019 and positive expected EBITDA for 2020 (revenue growth may increase due to public safety concerns from COVID-19)
  • Originator of the WELL Building Standard, a scientific evidence-based system for measuring and improving the impact of building features and systems on human health
  • Advancing next generation technology and programming to enhance the impact that buildings (e.g., homes, offices, hotels, schools, etc.) have on the health and well-being of occupants
  • Innovative technology called Well Living Lab tracks and researches the effects of the indoor environment on human health and implemented through the WELL standard
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Helping Great Companies Grow

Opportunity

  • COVID-19 has put safety and wellness at the forefront of real estate globally
  • On average, 90% of a person’s time is spent indoors
  • Tenant preferences are changing, due to increasing urbanization and globalization, changing workforce demands, such as flexible location and workspaces, and technology advancements, such as AI and Internet of Things (IoT)
  • The April 2019 AFIRE survey shows a sustained global investor confidence in US CRE à rental growth increased, and vacancy levels steadily decreased across property types
  • Executives in the CRE space acknowledge that the benefits of IoT and AI technologies are not limited to tenant experience – they also raise operational efficiency and lower costs
  • With respect to tenant experience–related technology investments over the next 18 months, 36 percent of respondents expect their organizations to hold the line, 42 percent anticipate a moderate increase, and 14 percent plan to significantly increase
  • Delos operates at the global intersection of the rapidly growing industry – wellness – and the world’s largest asset class – real estate
    • Market capitalization of real estate is $180 trillion (2019)
    • Wellness annual consumer spending is $4 trillion (2019)
    • Reduces world largest liability – reactive healthcare ($15 trillion annual spend)
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Helping Great Companies Grow

Solution/Strategy

  • Delos provides a solution for the new normal in public spaces
  • Already integrated into several business, including the Mayo Clinic, CBRE, Wells Fargo, and many others
  • Can help reduce the transmission of airborne illnesses and promote health and well-being every day
  • Holistic solutions incorporate in-room design features and services to support immune health and encourage healthier living
  • Delos has successfully expanded into 58 countries, spanning over 4,000 projects, and encompassing nearly 500 million square feet with more than 1,000 distinct clients
  • Through a combination of patents, trade secrets, development and acquisition, Delos has developed a robust portfolio of intellectual property
    • 21 patented granted, 50 patent applications pending, 5 design patent registrations granted, 7 design patent applications pending
  • Delos raised over $75 million of additional capital in their Series B round, securing a strong balance sheet for operational growth
  • With substantial year over year revenue growth and cash operational expense growth at only 5%, Delos has established a pathway to profitability and a business model designed to achieve scalable, recurring and high margin revenue (with expanding margins as growth continues), into a sizeable and addressable market
  • As of December 31, 2019, Delos had $45.2 million of cash; virtu­ally debt-free – only $2 million of convertible notes outstanding
Helping Great Companies Grow

Management

Paul Scialla

Founder, CEO

25-year track record in real estate management, property development, and investment. Significant successful fintech and real estate experience in property management. CFO of Udolf Enterprises, a large CT-based commercial property operator, for 22 years. BS, Finance, University of Connecticut.

Peter Scialla

President and Chief Operating Officer

Experienced entrepreneur investing in and building disruptive technologies. Successfully built and exited companies in the enterprise IT space and helped over 30 early-stage companies as an investor and an advisor. Began career as systems consultant at IBM Global Services. Active investor in the private lending space for a number of years. Vision to help borrowers obtain the best user experience when securing a private loan, while using modem software to bring scale to the business. BS, Information Technology – Central Connecticut State University. Entrepreneurial Masters Program, MIT.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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