- PropertyGuru is the number one property site in Singapore, Malaysia, Thailand and Vietnam
- REA Group, an investor in PropertyGuru, will commit A$43M into their NYSE raise
- The deal should deliver US$431 million in gross proceeds to the company, on listing
Australia’s leading real estate listings business, REA Group (ASX:REA), is joining billionaires Richard Li (Pacific Century Group) and Peter Thiel (Thiel Capital), to list South-East Asian property site PropertyGuru on the New York Stock Exchange, by forming a new holding company, Bridgetown 2.
In a deal worth US$1.78 billion (A$2.41 billion), existing investor REA will commit a further US$32 million (A$43 million) to the venture.
Aborted ASX listing
Founded in Singapore in 2007, PropertyGuru had been planning to list on the ASX in 2019, but that idea was pulled due to a reported “uncertain market conditions” at the time.
With 2.8 million listings, and 37 million monthly visitors, the property marketplace has grown to become a leading site across Singapore, Malaysia, Thailand and Vietnam.
Over the past four years, revenue growth has averaged 25% per year, pre-pandemic, and 29% since. The business has also enjoyed a buoyant property market in its core countries.
“We have established a market leadership position in the South-east Asian property ecosystem and a track record of revenue growth. Much of our success is the result of our investment in technology over the years and capturing strategic growth opportunities in recent times,” said Property Guru CEO Hari V. Krishnan.
“We have a story to be told and found the right partner to help us tell it to public market investors. We are delighted to partner with Bridgetown 2 as we accelerate our mission to be the trusted advisor for property.
“This process of becoming a public company will provide us with greater financial resources to do what we do best – helping people find, finance and own their homes in an efficient and transparent manner.
“We believe the strategic, proactive steps that we have taken over the past 18 months will enable us to stay ahead of the market’s evolving needs, which are increasingly being shaped by the growth of affluent and digitally-enabled populations living in cities across Southeast Asia,” he said.
High profile digital entrepreneur, co-founder of PayPal and investor Peter Thiel, with a reported net worth of US$4.5 billion, said he was excited about the deal.
“The market for property is probably the oldest market in the world, and only now is it beginning to change rapidly. As PropertyGuru spearheads that change in Southeast Asia, Bridgetown 2 will provide capital and expertise to accelerate it even further.”
Peter Thiel, Thiel Capital
Founder of Star TV in Asia, Richard Li is a Hong Kong businessman, also worth around US$4.4 billion.
The combined company, Bridgetown 2 Holdings, will look to list on the NYSE, at about double the previously proposed valuation of the ASX listing mooted in 2019.
The deal should deliver US$431 million in gross proceeds to the company, on listing.