Classifieds giant REA Group has paid $106 million for 17.2 per cent of iProperty Group, an online property business that operates in South East Asia.
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iProperty, founded by BRW Young Rich list member Patrick Grove, has digital property advertising operations in Malaysia, Indonesia, Hong Kong, Macau and Singapore, as well as investments in India and the Philippines.
REA operates Australia’s No. 1 property marketing website realestate.com.au and is 61.6 per cent owned by News Corporation.
It bought the stake in iProperty from French real estate business SeLoger.com.
The $106 million price tag reflects about a 10 per cent premium to iProperty’s closing share price on Friday and is REA’s largest ever single investment.
Shares in iProperty surged by 12.2 per cent to $3.50 on Monday morning.
“This acquisition provides us with a strategic stake in one of the fastest growing real estate markets in the world and complements our existing business in Hong Kong, and the recent launch of MyFun.com and our partnership with Soufun.com in China,” REA interim chief executive Peter Tonagh said in a statement.
“The iProperty Group’s … brands are strongly positioned in each of their respective markets throughout South-East Asia.
“We understand and respect the business models in play in these markets and look forward to working with the iProperty Group Board to support the continued delivery of their exceptional results.”
REA is seeking representation on the iProperty board.
