EQT Private Capital Asia, an Asian buyout fund backed by billionaire Jean Salata, has agreed to acquire PropertyGuru, a Singapore-based online real estate platform, in a $1.1 billion all-cash transaction. This deal values PropertyGuru at $6.70 per share, representing a 52% premium over its closing price on May 21. The acquisition is expected to close by the first quarter of next year pending shareholder and regulatory approvals, with U.S. private equity firms KKR and TPG, which collectively hold a 56% stake in PropertyGuru, endorsing the transaction.
Once the deal is completed, PropertyGuru will delist from the New York Stock Exchange and transition to a privately held company, though its headquarters will remain in Singapore. EQT plans to raise $12.5 billion for a new Asia-focused fund that will be managed by EQT Private Capital Asia. PropertyGuru’s CEO, Hari V. Krishnan, expressed excitement about the acquisition, stating that EQT’s expertise and commitment to sustainable growth will strengthen their vision of powering communities to thrive in future cities.
REA Group, an Australian real estate company controlled by Rupert Murdoch’s News Corp, holds over 17% of PropertyGuru. They expect to receive approximately A$286 million from the sale of this stake. PropertyGuru was launched 17 years ago and has since grown to over 28 million monthly active users, with listings in Singapore, Malaysia, Thailand, and Vietnam. Salata, with a net worth of $6.5 billion, has been ranked as one of Hong Kong’s richest individuals and led the management buyout of Baring Private Equity Asia in 2000. His combined operations with EQT have since been rebranded as EQT Private Capital Asia.
The announcement of the acquisition comes as a strategic move for PropertyGuru to fully harness its long-term growth potential and provide compelling value and certainty to shareholders. This deal signifies EQT’s commitment to the Asian market and their expertise in building marketplaces. With the backing of KKR and TPG, the agreement is expected to strengthen PropertyGuru’s position in the real estate industry and enable them to achieve their vision of supporting communities in tomorrow’s cities.
The completion of the transaction will see PropertyGuru continue its operations as a privately held company, focusing on growing its user base and expanding its reach in the Asian real estate market. The support from EQT and other stakeholders will position PropertyGuru for sustained growth and success in the future. Salata’s leadership and experience in the private equity industry bode well for the continued development of PropertyGuru under EQT’s ownership.
