FacilityPro.com Receives $25 million Investment from Constellation Real Technologies

ATLANTA, GA - (September 20, 2000) - In its first direct investment since inception, real estate industry consortium Constellation Real Technologies, formerly referred to as Project Constellation, has made an investment of $25 million in FacilityPro.com, a business-to-business (B2B) electronic marketplace for commercial property managers and suppliers.

Constellation Real Technologies, formed by 11 of the nation’s largest owners, managers and developers of real estate, invested in FacilityPro.com as part of a strategy to bring e-commerce solutions to its members and customers. In addition to investing in FacilityPro.com, Constellation has recently selected a name, Constellation Real Technologies, and finalized its formation with a total capitalization of $135 million committed by its founding members. Atlanta-based FacilityPro.com operates a B2B marketplace that optimizes the highly fragmented facilities products and services supply chain.

“The fact that Constellation chose FacilityPro.com after an extensive search for potential partners is a validation of our business model and of the value we bring to owners and operators of real estate,” said Peter Dunning, FacilityPro.com chief executive officer. “This is a $25 million vote of confidence from the top players in the real estate industry. We are now actively working with several Constellation member companies to implement their facilities products and services procurement.”

In addition to the funding from Constellation, FacilityPro.com is also receiving $10 million from other investors led by Austin Ventures, a premier venture capital firm that was the lead investor in FacilityPro.com’s initial financing. The investments bring the total second round of funding in FacilityPro.com to $35 million.

“Every member of Constellation recognizes the impact that e-commerce technology is going to have on our industry,” said David Simon, chief executive officer of Simon Property Group, a founding member of the consortium. “FacilityPro.com is representative of the ‘best of breed’ companies that are using e-commerce technology in new ways to benefit the real estate industry. Constellation’s objective is to identify and invest in such companies, like FacilityPro.com, which represent a broad range of functionality across multiple property sectors.”

FacilityPro.com, formed in 1998, currently manages the procurement for over 110 million square feet of commercial space. The online marketplace addresses the needs of property and facility managers who are seeking to maximize the profit potential of their real estate portfolio through more efficient procurement of facilities products and services. Participants in the marketplace consist of property management companies, retail and corporate property owners, real estate investment trusts and service providers to these markets. Customers include: Federated Department Stores; , Encompass Services Corp.; , Service Resources Inc. and others.

“One of the criteria we consider as we look at real estate-related e-commerce enterprises is the ability to provide a proven, scalable platform,” said Tim Callahan, chief executive officer of Equity Office Properties Trust, a Constellation founding member. “FacilityPro.com isn’t just a good idea on paper. It’s an end-to-end procurement e-marketplace that has been operational for two years and generating good results for its customers. This transaction represents the type of strategic opportunity we envisioned when we joined Constellation.”

home | contact us | news | about us | FAQ's | opportunities | partners Copyright © 2001 Constellation Real Technologies