Singapore real estate startup PropertyGuru Pte. is buying all the shares of Australia's REA Group Ltd.'s operating entities in Malaysia and Thailand.
PropertyGuru - which started business in 2006 - offers buying and renting of real estate properties and publishes real estate information.
REA Group's shares were last traded on the Australian exchange at A$163.76 - down A$0.72, or 0.44% - on the news. REA is majority owned by Rupert Murdoch's News Corp. PropertyGuru is unlisted. It is backed by private-equity companies KKR & Co. and TPG Capital and is said to be considering a U.S. listing through a merger with a special purpose acquisition company, according to people familiar with the matter.
PropertyGuru said Monday it and REA had agreed that PropertyGuru will acquire all of the shares in REA Group's operating entities in Malaysia and Thailand, which operate iProperty.com.my and Brickz.my in Malaysia and thinkofliving.com and Prakard.com in Thailand. As part of the agreement, REA Group will receive an 18% equity interest in the enlarged PropertyGuru Group and appoint a director. The deal is expected to be done by July.
The deal will reduce competition in Malaysia and Thailand where PropertyGuru has been competing against REA's affiliates, Bloomberg News reported.
Its chief executive Hari V. Krishnan said "iProperty Malaysia in particular is an excellent asset. Malaysia is going through a bit of correction, driven very much by Covid right now, but the mega macro trend still exists."
"A key part of PropertyGuru's success has been its laser focus on anticipating and addressing the unique needs of consumers in our region by investing in continuous innovation. As a Singapore based and home-grown, regional Proptech leader, this is a key milestone in PropertyGuru's history. It is an exciting and significant step in our vision to provide ever greater value to our customers across a broader addressable market in Southeast Asia," it chairperson Olivier Lim said in Monday's statement.
In Thailand, PropertyGuru operates the No. 1 property marketplace under the brand DDproperty.com, and attracts over 3 million visits each month.
PropertyGuru said "the two brands have unique and complementary audiences and the transaction will see both brands retained. The acquisition will have the following benefits. It will enable both companies to combine resources, accelerate innovation and provide enhanced digital solutions to home seekers, property agents and developers."
"The proposed transaction will provide REA with a strategic shareholding in a larger, more diversified company in a region that continues to experience rapid digital transformation across the real estate sector," REA said in a statement to the ASX.
