REA Group has recently acquired a shareholding in iProperty Group Limited, an online property business operating in south east Asia headed by the former chief of LJ Hooker.
REA attained a 17.22 per cent shareholding in iProperty Group, which owns online property advertising operations in Malaysia, Indonesia, Hong Kong, Macau and Singapore.
Headed by former chief executive of LJ Hooker Georg Chmiel, REA bought the large stake in iProperty for a total cash consideration of $106.3 million.
As a result of this acquisition, REA will enter into discussions with iProperty Group regarding seeking representation on the board.
REA Group interim chief executive Peter Tonagh said the acquisition supported the group’s stated strategy of investing in markets where conditions are strong.
“This acquisition provides us with a strategic stake in one of the fastest growing real estate markets in the world and complements our existing business in Hong Kong, and the recent launch of MyFun.com and our partnership with Soufun.com in China,” he said.
“The iProperty Group’s portfolio of brands are strongly positioned in each of their respective markets throughout south east Asia.
“We understand and respect the business models in play in these markets and look forward to working with the iProperty Group board to support the continued delivery of their exceptional results,” he added.
In reference to the acquisition, iProperty Group chairman Patrick Grove said, “The board and I are delighted that REA Group has chosen to invest in IPP and we look forward to working with them to continue to deliver on our Asian success story.”