Australia’s REA Group announces JV with 99.co to target Singapore, Indonesia real estate markets
Australia’s operator of country’s leading residential, commercial and share property websites REA Group has announced partnering with Singapore-headquartered digital property marketplace 99.co to create the largest customer and listings footprint in Singapore and Indonesia.
“The combined company will provide the most compelling property marketplaces in Singapore and Indonesia, while delivering the best digital platforms to property professionals to help them grow their businesses,” REA said in a statement on Tuesday.
The existing businesses of 99.co, iProperty.com.sg and rumah123.com will form a joint venture with a base in Singapore.
Existing shareholders of 99.co, including the founding partners, Sequoia, Facebook co-founder Eduardo Saverin, Allianz X, MindWorks Ventures, East Ventures and 500 Startups will have shareholdings in the JV company totalling 73%, according to the statement.
Darius Cheung will become CEO of the new JV company while Henry Ruiz , CEO - REA Group Asia & Chief Strategy Officer ,and Janelle Hopkins , REA Group Chief Financial Officer, will represent REA Group’s interest as Non-Executive board directors.
While the transaction, which remains subject to confirmatory due diligence, is anticipated to be completed in the second quarter of FY20, the new joint venture company will be fully operational across both Singapore and Indonesia in early 2020, the company said.
REA Group will be the largest shareholder with a 27% shareholding and will also contribute USD$8 million in working capital to the joint venture.
The core to the JV company will be harnessing the know-how and capability of REA Group and leveraging the entrepreneurial expertise of 99.co that has grown its total user base by 32 times in the past two years under the leadership of its co-founder and CEO Darius Cheung, the company said.
“Joining forces with 99.co creates the market leading presence in terms of customers and listings. Combined with our expertise and experience in other countries where we are the clear market leader, this presents a fantastic opportunity to rapidly increase our market share in these expanding growth markets”, REA Group, CEO Owen Wilson said commenting on the new partnership.
Darius Cheung, CEO of 99.co said: “Our JV company sets the scene for us to create the number one place for property seekers in Singapore and Indonesia and in turn provide the best value for property professionals.”