REA Group acquires $67 million stake in Indian real estate platform PropTiger
REA Group, operator of property listings platform realestate.com.au, has announced it is to acquire a 14.7 percent take in Indian real estate platform PropTiger for US$50 million (approximately $67 million) as the Indian real estate market gets ready for a boom. India is expected to become the world’s third largest real estate market by 2030, with the sector contributing to over 15 percent of the country’s GDP.
With PropTiger owning and operating proptiger.com, Makaan.com, and today announcing its acquisition of Housing.com, REA Group stated the company is one of the top three players in the Indian market.
Allowing users to search for and shortlist properties, arrange inspections, arrange home loans or legal services, and then buy a property, $1.5 billion worth of transactions have been completed through the PropTiger platform since its founding in 2011.
News Corp, majority owner of REA Group, is also a majority shareholder in PropTiger, which also counts Accel Partners and Nexus Venture Partners among its investors. News Corp’s stake in the Indian company will be upped to 21 percent through the deal.
REA Group has been looking to Asia for some time, last February acquiring a stake in digital real estate company iProperty, which operates across Malaysia, Hong Kong, Indonesia, and Thailand.
Tracey Fellows, CEO of REA Group, said India is an important part of the company’s international growth strategy.
“We believe in the potential of the Indian real estate market. REA invests in companies that are leaders in their markets. The joint entity will have access to REA Group’s expertise and know-how from its operations across the globe.”
News Corp chief executive Robert Thomson added, “With 1.2 billion people and a rapidly growing economy and middle class, India’s future as a real estate powerhouse is exceptionally bright, and we’re proud to be a part of this expanding sector.”
India’s real estate market is expected to be valued at US$180 billion by 2021, with KPMG estimating that the country’s urban population will grow from 420 million in 2015 to 583 million by 2030.
The investment into India comes after REA Group sold its European businesses, atHome Group and REA Italia, to Oakley Capital Private Equity in late December for $189.7 million.
As the company continues to face off against Fairfax’s Domain Group, REA Group also announced a five year strategic partnership with NAB through realestate.com.au last December.
Through the partnership, the companies will work to create an “integrated digital home loan experience” on realestate.com.au, giving consumers an end-to-end property buying experience. Realestate.com.au will receive funding from NAB to develop this technology, as well as commissions for home loans settled through the platform.
Image: Tracey Fellows. Source: heraldsun.com.au