This week, Australia's REA Group, Australia’s leading digital advertising business specializing in property, officially announced it had acquired a 17.22% shareholding in iProperty Group, owner of Asia's No.1 network of property portal sites under the iProperty brand.
The shares, valued at A$106.3, were acquired from SeLoger.com SA, operator of France’s largest property classifieds portal and a subsidiary of the digital publisher Axel Springer SE.
SeLoger, which invested in iProperty back in 2011, said that it decided to sell its interest in the Group because it was difficult to gain a strategic majority, besides SeLoger currently wishes to focus more on the European market.
Today, iProperty Group announced that it was pleased to welcome the REA Group as one of its major shareholders.
iProperty Group’s Chief Executive Officer and Managing Director, Georg Chmiel said, “This substantial investment by the REA Group is a strong validation of our unique and leading market presence in Asia. The REA’s strong business acumen will be a major asset in advancing the iProperty Group’s development, both in maintaining its current strengths and reaching new heights in Asia.
REA’s interim Chief Executive Officer, Peter Tonagh, was quoted saying that the acquisition provides the REA Group with a strategic stake in one of the fastest growing real estate markets in the world and complements its existing business in Hong Kong, and the recent launch of MyFun.com and our partnership with Soufun.com in China.
Since its launch, the iProperty Group, has seen consistent growth in traffic and revenue. The company, which is the trusted and preferred marketing partner to 30,000 property agents and 400 developers, also serves 4 million consumers per month.
In the second quarter as well as first half of the year, the iProperty Group has demonstrated strong organic growth. Cash receipts for the second quarter were AUD$6.0 million resulting in a net operating cash inflow of AUD$0.2m. Cash receipts for the first half of 2014 were AUD$11.3m, up 26% on the same period last year.
“We have worked hard to achieve a clear leadership position and to make iProperty Group the trusted platform for both consumers and customers in Asia. Now, with our combined strength together, we will be able to accelerate our growth in Asia to reach even greater heights.” concluded Chmiel.