PropertyGuru Group and REA Group (ASX:REA), an ASX listed digital business specialising in property marketplaces and data assets have announced they have entered into an agreement whereby 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 percent equity interest in the enlarged PropertyGuru Group and appoint a Director to the Board. The transaction is expected to close in July 2021.
A key objective of the transaction is to accelerate the development of the Proptech industry in Malaysia. The addition of iProperty.com.my and Brickz.my is expected to bolster PropertyGuru Malaysia’s ability to provide consumers with the most diverse digital marketplaces, together with the most comprehensive set of data, actionable insights and services to support homeownership aspirations of Malaysians.
The acquisition will enable both companies to combine resources, accelerate innovation and provide enhanced digital solutions to home seekers, property agents and developers.
It will also allow the Group to share the best data solutions and insights and bring transparency and access to the Malaysian property market as it continues to simplify the buying journey for home seekers.
Hari V. Krishnan, Chief Executive Officer and Managing Director of PropertyGuru Group, said, “This acquisition is a key milestone in PropertyGuru’s history and is an exciting opportunity to integrate a trusted local brand in Malaysia and demonstrates our commitment to the market. We have been operating here for a decade now. Malaysia has always been of strategic importance to the Group – from launching our first fintech value proposition to it being our hub for central functions such as Finance. With this acquisition, we are more than doubling our footprint in Malaysia and we will continue to invest behind the country’s critical role in PropertyGuru.”
Owen Wilson, Chief Executive Officer, REA Group said, “We are excited about the opportunity to bring these great businesses together. REA and the PropertyGuru team share a similar vision of the incredible opportunities in the region. Joining with the PropertyGuru Group creates new opportunities for collaboration and access to a deeper pool of expertise, technology and investment. It positions these already strong brands well to accelerate the next wave of Proptech innovation in Southeast Asia.”
