REA Group have agreed to buy a 14.7 per cent stake in Indian online real estate marketing group PropTiger for $67.9 million.
PropTiger.com and Housing.com, two of India’s leading online real estate service providers, in a seperate announcement said the investment will enable it to become India’s largest online real estate services company in the near future.
Under the agreement, REA which is headquartered in Melbourne will invest in the collective entity, with an affiliate of Softbank Group Corp investing $6.78 million.
The acquisition will enable REA to draw on strengths of PropTiger, Housing.com and Makaan.com to offer a unique holistic experience to consumers, real estate developments, brokers and homeowners.
PropTiger is the largest online residential real estate brokerage firm in India, having completed transactions worth $1.5 billion since its founding in 2011, while Housing.com is India’s most popular online platform for buying and selling homes, receiving over four million visits every month.
By 2030, India is expected to be the third largest real estate market in the world with the sector contributing to over 15 per cent of national GDP.
The joint PropTiger-Housing.com entity is well positioned to win the digital real estate market in India with its unique capabilities and a robust set of institutional investors, which also include SAIF Partners, Accel Partners and Nexus Venture Partners.
“India is an important part of our 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,” REA Group chief executive Tracey Fellows said.
Meanwhile, REA’s parent company News Corp was also elated with the move.
“Our investments in PropTiger, REA Group and Move, Inc. are a testimony to our faith in the potential of the global digital real estate market, of which we are now the largest player,” News Corp chief executive Robert Thomson said.
“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.
“Clearly there is a compelling commercial purpose to the deal, but we also firmly believe in providing transparency, analysis and insight so that all Indian families, regardless of traditional background or means, will have a better understanding of the property market,” he said.
Related: REA Group announce the appointment of Mr Haresh Khoobchandani to the role of iProperty Group General Manager, Malaysia and Singapore.