PropertyGuru swaps investor hands for next phase of growth

Asian real estate platform PropertyGuru has been acquired by EQT, in an all-cash deal valuing the Singapore-based online real estate platform at $1.1 billion. The deal was advised on by advisors from investment banks, M&A consultancies and law firms.

Launched in 2007, PropertyGuru has since its inception grown into the largest property platform in Southeast Asia. Every month, the platform connects 28 million property seekers in Singapore, Malaysia, Thailand and Vietnam to over 46,000 agents. The company has in recent years also diversified into other related segments, such as home loans and solutions for enterprise customers.

The deal with EQT will see the Swedish private equity group pay a 52% premium on PropertyGuru's share price on May 21, a day before news on a potential deal broke the headlines, and see shareholders receive $6.70 apiece, a 7% premium to the firm’s close on Thursday the 15th of August.

EQT is purchasing its stake from fellow private equity groups TPG and KKR.

Hari Krishnan, CEO and Managing Director of PropertyGuru Group, said, “We are pleased to embark on this new chapter with EQT. As we continue to innovate and deliver value to our consumers, customers, and stakeholders across the region, EQT’s global expertise in building marketplaces and commitment to sustainable growth will further strengthen our vision to power communities to live, work, and thrive in tomorrow's cities.”

PropertyGuru’s board of directors has unanimously approved the bid, and recommended the approval of the deal by the company's shareholders. The deal is expected to close in Q4 2024 or Q1 2025, subject to customary closing conditions, including receipt of regulatory approvals.

“We believe our offer provides shareholders with compelling value and certainty, while strategically positioning PropertyGuru to fully harness its long-term growth potential. With EQT’s significant experience in the technology, online classifieds and marketplace sectors, we aim to further strengthen PropertyGuru’s platform, driving enhanced innovation and deeper engagement with its consumers, customers and stakeholders,” said Janice Leow, an executive at EQT.

Dealmakers

PropertyGuru was advised during the deal by Moelis & Company (financial advisor), Bain & Company (commercial due diligence), KPMG (transaction advisory), and Freshfields Bruckhaus Deringer (legal counsel).

“Executing transactions of this complexity isn’t easy,” said Krishnan. “We owe huge thanks to the many who worked through this process in a compressed period, especially to our management team and to our advisors Moelis & Company, Bain & Company, KPMG, and Freshfields Bruckhaus Deringer.”

J.P. Morgan and Latham & Watkins served as advisors to sellers KKR and TPG, while buyer EQT worked with Morgan Stanley and Ropes & Gray, among others.