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Two Sydney-based companies that use artificial intelligence (AI) to service different needs within the property industry have joined forces, with intelligence platform Archistar teaming up with commercial real estate lender Blackfort to offer loans to its subscribers.
Archistar helps expedite designs and builds for projects by utilising AI to assess local planning rules and restrictions, combining architectural design and technology to inform the decision-making of agents, developers, architects, government planners and homeowners nationwide.
Since it was founded in 2018 by brothers Dr Benjamin and Rob Coorey, the company has grown rapidly with notable clients including Mirvac, Ernst & Young, Brookfield and JLL, as well as a presence in Canada and the USA.
The software It allows professionals to create and assess hundreds of compliant 3D generative designs, exploring features like height restrictions, exposure to sunlight and ventilation.
Now Archistar is expanding its offering by partnering with Blackfort to streamline and innovate the loan process for real estate development.
The real estate lender, which is AI-driven and services the $1.5 million to $20 million loan market in commercial property, says the partnership will allow it to provide instant access and certainty of funding for smaller and mid-size developers to secure sites for development.
As a result of the partnership, Blackfort will have access to data insights typically only available to the top-end of the market through Archistar’s propriety deal assessment engine.
The Blackfort product, set to be launched in Australia within the next three months and in New Zealand late next year, is expected to result in faster decision-making and facilitate a conditional, instant ‘yes’ for loan applications with lower overheads and customer acquisition costs.
"Blackfort’s platform has the potential to revolutionise an often-neglected segment of the commercial real estate debt market," says Prabhat Sethi, former managing director of Murdoch Media and chairman of Blackfort.
"Blackfort will assist developers acquiring sites and ensure rapid deployment of funds. This partnership will modernise the sector by creating speedier and safer decision making," adds Sethi, who also sits on the Archistar board.
Archistar co-founder and CEO Dr Benjamin Coorey says that on a global scale the company's vision is to revolutionise the way developers assess, design and build properties, and the partnership with Blackfort is a natural step to improving the end-to-end process.
"We are very pleased to partner with Blackfort to further service the property development sector," says Dr Coorey, who won the 2023 Sydney Young Entrepreneur Award - Property & Construction, and was recently featured in the 2024 Australia's Top 100 Young Entrepreneurs list.
"We are excited about the product that will rapidly deploy loans to developers in a segment that has been underserviced by banks and other lenders."
Blackfort and Archistar have already deployed $50 million with volume builder Simonds Group (ASX: SIO) and a select number of smaller developers as part of a pilot for rapid funding for site acquisition.
"It is great to see Blackfort to continue partnering with companies to bring innovation into the property sector," says Simonds Group executive chairman Rhett Simonds.
"As a leading home builder that has been constructing since 1949, we understand the importance of home ownership to Australians. Blackfort came to the table when others couldn’t, and we look forward to continuing our partnership."
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