The sale includes REA's European brands: atHome Group in Luxembourg, France, Germany; and REA Italia, S.a r.l’s business in Italy valued at €132.6 million.
REA, who owns realestate.com.au, will receive a profit of AUD 168.4 million subject to final completion adjustments.
The group's CEO Tracey Fellows said the sale resulted in competition from a number of companies.
"We were approached by multiple parties interested in our European businesses and took the opportunity to look at where we could make the greatest impact and optimise return for our shareholders,” she said.
Fellows also commented that the transaction will allow REA to further sharpen its focus in key growth areas across America, Australia and Asian markets.