Ever since Rikke Lykke took over as CEO of Denmark’s largest property manager company, Deas, in August last year, she has stirred up the company. Now, Deas enters what Rykke Lykke calls a ‘determining agreement’.
It is part of the digitalisation strategy, which is to shift the company’s focus from managing properties to advising investors to a greater extent.
Deas is therefore investing millions in a partnership with international PropTech success Yavica, which leads to a new IT platform for the property manager with headquarters in Copenhagen. In the future, when tenants need help as a caretaker, see bills or access move-out inspection reports, it is done via an app where Deas communicates with the tenants in real time.
Deas manages around 2,600 properties, which make up a total portfolio of approx. DKK 277 billion.
YAVICA sells its software products covering all aspects of real estate investment and administration to about 80 customers in 40 countries. The product offers standard solutions e.g., in the field of rent regulation.
Copenhagen-based YAVICA has primarily served customers outside national borders since its foundation in 2017. However, CEO Mads Pihl Sørensen presented a new strategy to hijack customers on Danish soil in December 2021.
The IT-company’s clients are major real estate administrators and investors with more than 30-40 employees and billion-dollar real estate portfolios. There are 10-20 of them in Denmark, says Mads Pihl Sørensen and Deas is the first Danish company in the order book according to the new strategy.
Today, YAVICA employs around 100 people in Denmark (HQ), India, Sweden, Austria, Switzerland, Poland, Romania, UK and the United States.
Despite the company’s expertise in many real estate markets, the director expects to draw some unique experiences from Deas as Denmark has unique rental rules and regulations.
“It is an advantage for us that Deas is so large; they have all types of leases and properties, which means that once we have implemented our solution at Deas, we can handle virtually all customers in the Danish market.
Revenue has sky-rocketed from DKK 9.5 million in 2017 to DKK 38 million in 2020 since YAVICA’s launch. The company has not yet published the financial results for 2021, but the CEO expects to hit 200 employees by the end of 2024, with the top line achieving similar growth.
Mads Pihl Sørensen expects to sign another agreement with another one of the country’s largest Real Estate companies during the summer, and other agreements are also in pipeline, he says. The increased Danish activity means that YAVICA will recruit ten new employees in Denmark over the coming year.
In the first half of 2023, Rikke Lykke expects YAVICA’s system to be implemented for the first properties in Deas’ portfolio. The CEO cannot tell what the next step in the digital transformation is, but the insights from the collaboration with YAVICA will create fertile ground for the next initiatives, says Rikke Lykke. The goal for the entire transformation is to reduce the administrative work in Deas by 50 percent.
Are you going to lay off employees?
We do not expect to cut staff, but we want to raise customer service levels, so the transition will free up more time to service both investors and tenants.
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