Operations

REEF raises $1B to go beyond parking lot hubs

Provided by REEF's website

November 4, 2020

REEF, a ghost kitchen provider with over 4,500 parking lot and garage locations in the U.S, has secured two deals totalling $1 billion to help it expand throughout the country.

First, the company raised $700 million in a round of funding led by Mubadala Capital, Mubadala Investment Company's financial investment arm. SoftBank Vision Fund as well as funds managed by Oaktree Capital Management L.P., UBS Asset Management and Target Global also participated in the round, according to a press release, which also announced separately that REEFand Oaktree have established the Neighborhood Property Group. The goal of the $300 million partnership is to transform REEF's parking lots and garages into Neighborhood Hubs where people can access local goods, services and experiences.

"This round of funding provides an exciting opportunity for our team to continue expanding the REEF digital platform," Philippe Saint-Just, REEF co-founder and head of product, said in the release. "We're especially proud to be able to provide local restaurants with solutions that they need to thrive."

Aziz Ihsanoglu, REEF co-founder and head of Strategy, agreed, stating that by leveraging its real estate locations, the company has created a proximity-as-a-service platform for businesses.

Adib Mattar, the head of Mubadala Capital's Private Equity business, said his team was backing the venture because transforming infrastructure to better connect the origin of production with the destination of consumption made sense.

"REEF is strongly positioned to serve communities where they have key infrastructure, proving essential to food delivery, package delivery, grocery delivery and healthcare," he said in the release.

REEF's restaurant partners include Burger-Fi, David Chang's Fuku, Umami Burger and Krispy Rice, among many others.