View smart window

Dynamic windows can double as digital displays, but the real benefit is cutting energy costs, Credit: View

Markets

View raises $200m as investors bet on smart windows

The company’s windows, which reduce a building’s energy use by adjusting to sunlight, are one building technology to benefit from the recent Inflation Reduction Act in the US.

View raised $200m in convertible senior notes from real estate investor RXR, USAA Real Estate, Anson Funds and BNP Paribas Asset Management’s Environmental Strategies Group.

The Inflation Reduction Act, which sought to support decarbonisation efforts in the US, added new tax credits to dynamic glass. The Investment Tax Credit covers up to 30% of the cost of purchasing smart windows, narrowing the price gap between traditional and smart windows.

“Smart windows represent one of the most impactful ways to reduce energy usage and carbon emissions from real estate,” said Scott Rechler, chairman and CEO of RXR, who will also join View’s board of directors.

View’s smart windows, which can also double as digital screens, help buildings control heat and glare by automatically adjusting to sunlight. The idea is to create an environment that both cuts the amount of energy needed to heat and cool a building and is more pleasant to work in.

At the Lake Union Building in Seattle, View reported that its windows cut building energy use by 17.7%, leading to annual savings of about $28,000. However, the amount of savings will vary depending on the age and state of the building. The 90,000 sq ft Lake Union Building was from 1970 and previously had single-glazed windows, making it a particularly inefficient site to begin with.

“At View, we are committed to creating sustainable, experiential, healthier, and smarter buildings. With the products and operations already in place, this capital allows us to scale our business to broad market adoption and profitability,” said Rao Mulpuri, CEO of View.

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The company reported $33m of revenue in the first half of 2022, up 25% from the year before, but it also recorded a loss of $165m (H1 2021: $170m).

Len O’Donnell, CEO of USAA Real Estate, said that the tax credit would make it “economically attractive” for anyone in real estate to install the windows across their portfolio. He added: “We could not be more excited to be part of View’s growth story.”

The markets reacted positively to the investment, with View’s share price rising nearly 28.9% yesterday after the announcement.

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