Swedish investment firm EQT AB has acquired Singapore-based online real estate platform PropertyGuru in an all-cash deal worth USD 1.1 billion. PropertyGuru's shareholders will receive USD 6.70 per share, a 7% premium over its last closing price. Managed by EQT Private Capital Asia, the deal will result in PropertyGuru's delisting. Top shareholders TPG and KKR hold 29.58% and 26.52% stakes, respectively. This acquisition strengthens EQT's portfolio in Asia, aligning with its strategy to expand in the technology and real estate sectors. The move supports PropertyGuru's growth and expansion across Southeast Asia's dynamic markets.
Swedish investment firm EQT AB announced the acquisition of PropertyGuru, a Singapore-based online real estate platform, in an all-cash deal valued at USD 1.1 billion. The agreement will see PropertyGuru's shareholders receiving USD 6.70 per share, representing a 7% premium over the company's last closing price on Thursday. EQT Private Capital Asia, the Asia-focused buyout fund of the Swedish private equity firm, will manage the acquisition. PropertyGuru, which went public in 2022, will be delisted as part of this transaction. This offer is also noted to be a 52% premium compared to PropertyGuru's stock price as of May 21, the day before Bloomberg News reported a potential buyout involving private equity firms TPG and KKR.
TPG and KKR, which own 29.58% and 26.52% of PropertyGuru respectively, are the company's top shareholders. While KKR declined to comment on the deal, TPG did not respond to Reuters' request for comment. Additionally, Australian real estate firm REA Group, which owns more than 17% of PropertyGuru, expects to gain around AUD 286 million (USD 189.6 million) from the sale of its stake. PropertyGuru, founded in 2007, provides online real estate search services across several Southeast Asian countries, including Thailand, Vietnam, and Singapore. Over the years, it has become a leading platform in the region, offering property listings, market insights, and related services.
In a separate development, EQT recently raised USD 1.6 billion in May to expand its presence in Asia's mid-market private equity sector. Earlier in the day, the Swedish firm also agreed to acquire KJ Environment, a South Korean environmental services company, from Seoul-based investment firm Genesis Private Equity. The acquisition of PropertyGuru marks another significant step in EQT's efforts to strengthen its portfolio in Asia. The firm has been actively pursuing investments in the region as it sees an increase in the growth potential, particularly in the technology and real estate sectors. The acquisition is expected to support PropertyGuru's future growth and expansion into new markets, further strengthening its position as a leading online real estate platform in Southeast Asia.
Hamad Al Hammadi, Deputy Group CEO of ADQ, highlighted the strategic importance of these investments. He indicated that the investment highlights ADQ's confidence in the promising prospects of the Southeast Asian real estate market and its dedication to seeking out value-enhancing opportunities that contribute to the broader economic diversification of their investment portfolio.
In conclusion, the acquisition of PropertyGuru by EQT AB demonstrates the growing interest of international private equity firms in Southeast Asia's dynamic and fast-growing markets. As EQT continues to expand its presence in the region, the deal underscores the increasing importance of technology-driven platforms in reshaping industries like real estate. For PropertyGuru, this acquisition represents an opportunity to leverage EQT's resources and expertise to further enhance its services and expand its footprint across the region. With strong backing from global investors, PropertyGuru is well-positioned to continue its growth course and drive innovation in the real estate sector. As the deal progresses, market watchers will be keen to see how the acquisition impacts the competitive landscape and the future of online real estate platforms in Southeast Asia.
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