Singapore deal puts REA on rise in Asia

REA will provide 99 Group interim funding for the acquisition by way of a three-year, interest-bearing convertible note.

REA chief executive Owen Wilson said 99 Group’s acquisition of SRX strengthened the company’s footprint in Asia and supported its global growth strategy. Picture: Supplied.

The REA Group has bolstered its coverage of the Asian market after 99 Group, in which it holds a 27 per cent stake, acquired the Singapore Real Estate Exchange.

The online real estate company has come through the worst of the coronavirus crisis and is stealing a march on its rivals by expanding into the fast-growing Asian markets.

REA, operator of 99.co and ­iproperty.com.sg in Singapore and rumah123.com in Indonesia, is also lifting its stake in an Indian property portal.

REA chief executive Owen Wilson said 99 Group’s acquisition of SRX strengthened the company’s footprint in Asia and supported its global growth strategy. “It also complements our ­recent announcement that REA will acquire a controlling interest in Elara Technologies, India’s fastest-growing digital real estate business in terms of audience,” he added.

Set up in 2009, SRX’s digital platform gives customers access to extensive property listings and is recognised as one of Singapore’s leading property data businesses. REA Asia chief executive Henry Ruiz said 99 Group’s ­acquisition of SRX would “significantly increase” the businesses’ competitive position, with the market “ripe for disruption”.

SRX would enable 99.co to combine digital advertising solutions and analytics and insights to help customers in Singapore.

REA will provide 99 Group interim funding for the acquisition by way of a three-year, interest-bearing convertible note for up to $S14m. The transaction is due to be completed in the coming months.

REA also owns leading portals in Malaysia and Hong Kong, a prominent portal in China and a leading property review site in Thailand. It also holds a significant shareholding in property website realtor.com in the US.

The Singapore move positions 99 Group to become the market leader in the city state in the ­medium term. It is seen as following the company’s strategy in ­Indonesia, where it acquired ­UrbanIndo and merged with rumah123.com to become the country’s largest property platform.

In a nod to the expanding range of technologies being added to the REA range, 99 Group noted that SRX came with best-in-class data capabilities and flagged further innovations. Property searches are shifting further online across Asia as part of a broader demographic shift.