Germany’s market leading ImmobilienScout24 (IS24) has taken an equity stake in the Singapore based PropertyGuru. While the exact terms of the deal are not known, it is being reported that IS24 has invested SG$60 million (AU$/US$47m) for “a significant share”. . It is not know how much of this has been invested into the company and how much has gone to existing shareholders. This investment comes hot on the heals of iProperty Group’s raising of AU$10m (SG$12.7m or US$10m).
The PropertyGuru Group is clear market leader in Singapore with subsidiaries in Malaysia, Thailand and Indonesia. PropertyGuru has over 8.2 million visits per month, more than 20,000 real estate agents and around 240 employees.
“The Asian region is a dynamic growth market and therefore of significant strategic importance to Scout24 Group. We are pleased to have found a partner in PropertyGuru with a strong super-regional position. Together, we will be able to develop the Asian market”, says Dr. Martin Enderle, CEO at Scout24 Group.
“This shareholding is part of our internationalization strategy to invest early on in emerging countries with strong growth and to establish the use of the Internet as a central and most effective instrument for seeking and marketing real estate. We built up Germany’s leading real estate marketplace and are pleased to contribute this know-how to our cooperation with PropertyGuru”, emphasizes Marc Stilke, CEO at ImmobilienScout24.
“We see strong economic growth, rising middle classes, urbanisation, developing property markets, as well as an online explosion, taking place throughout Asia. PropertyGuru sits in middle of all of this. Our revenues and traffic doubled over the previous year, and we increased our leadership position in our markets. We welcome ImmobilienScout24 as a strategic investor, which will accelerate our growth and supported additional investment in developing innovative services for our clients,” stated Steve Melhuish, CEO and co-founder of PropertyGuru Group.
This is believed to be ImmoScout24′s first investment outside of Germany/Switzerland and follows on the successful investment last year by Seloger, the market leading French portal, into the iProperty Group. Seloger now holds a 17% stake.
Disclosure: Parties associated with Property Portal Watch have shares in the ASX Listed iProperty Group
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{ 3 comments… read them below or add one }
S$60mn apparently Simon – and that does not even give IS24 control > http://e27.sg/2012/06/07/breaking-propertyguru-secures-s60million-strategic-investment-from-immobilienscout24-for-further-regional-expansions/
Huge pay day for the founders. Straight off to the local Porsche dealership. Selling out of the business huge step. The Germans taking over will be interesting.
Yes. Well done to the founders -this is an incredible amount of money to pay for what is essentially a Singapore business. Singapore is the only place where PG can claim anywhere near No1 market position – and where about 95% of their revenue is generated – has a population of 3 million locals plus 2 million expats.