Singapore real estate portal 99.co has agreed to form a joint venture with iProperty, which will include iProperty’s parent company, the REA Group investing $8 million USD into the joint venture. The REA Group is a real estate-focused digital advertising conglomerate that is listed on the Australian Securities Exchange (ASX).
A statement from REA Group said that the joint venture immediately makes 99.co the market leader in Indonesia and positions it to take the top spot in Singapore, as well. The deal also makes 99.co a rival to Singapore-headquartered PropertyGuru.
PropertyGuru Group was founded in 2006 and is best known for running real estate related portals, www.PropertyGuru.com.sg, Singapore’s leading property site; www.CommercialGuru.com.sg, a commercial and industrial property portal; and www.LoanGuru.com.sg an online mortgage brokerage with access to mortgage deals from various banks.
Backed by TPG Capital and KKR, PropertyGuru is expected to launch an IPO on the Australian Stock Exchange in October that could see the raise $250 million to $260 million USD.
Once the joint venture between 99.co and iProperty is finalized, 99.co will take over the management of two of REA Group’s consumer brands and web portals, iProperty.com.sg in Singapore and Rumah123.com in Indonesia. Both iProperty.com.sg, and Rumah123.com were founded in 2007 and are well known and established entities in each of their markets.
Analysts say that the joint will value 99.co at $100 million USD, or more, and position the company as one of the top companies in Southeast Asia.
Founded in 2014, 99.co says it’s the fastest growing property portal in Southeast Asia. In August the company completed a Series B round of funding that raised a $15.2 million USD. Its investors include Facebook Co-founder Eduardo Saverin, Allianz X, East Ventures, MindWorks Venture and Sequoia Capital (India).