Onthehouse is in advanced negotiations to form a joint venture that would combine its consumer-centric portal (onthehouse.com.au) with real estate industry owned portal (realestateview.com.au). The deal would also include Residex, the data business owned by Onthehouse.
It is hoped that the joint venture will create a significant competitor in the Australian real estate portal market, with greater scale across both consumer audience and revenue, and is expected to be immediately profitable.
A non-binding termsheet was signed in December and a sale agreement is being prepared. Concurrently, the parties are continuing discussions with other strategic joint venture partners that could see increased investment to aggressively accelerate the new joint venture’s marketing and product development.
Commenting on the proposed joint venture, Onthehouse CEO Chris Meehan said: “A joint venture with real estate industry owned RealestateVIEW would create a larger profitable competitor in the Australian online real estate sector. The new business would have well over two million unique browsers per month, and around 75% of sale and rental listings. This joint venture would be a natural evolution for Onthehouse’s Consumer Online division.
“If implemented this joint venture would provide the real estate industry with a scale platform to participate in the online real estate sector at a time when many are looking for an alternative to the existing online portals.”
Enzo Raimondo, RealestateVIEW’s Managing Director, said: “Together, RealestateVIEW and Onthehouse.com.au have built a real estate marketplace that provides consumers with all sold and current property information in one place and delivers real value to the real estate industry.
“Onthehouse.com.au recently launched a new platform that gives consumers a unique search experience and the data to make more informed property decisions. We believe it provides a strong strategic fit with RealestateVIEW.”