KUALA LUMPUR, Nov 3 — Malaysia-based online real estate listings iProperty has been bought over by a unit owned by Australian media mogul Rupert Murdoch for a whopping A$751 million (RM2.3 billion), the largest acquisition of an Asean start-up, Singapore daily Straits Times reported today.
The acquisition by REA Group, which is part of Australian conglomerate News Corp, has bought the online property listing for Asean countries for more than 16 times the return on investments.
“It is 16 times return on investment for investors, which is a very good deal. It is a huge pat on the back for us,” said its Australian founder and chairman, Patrick Grove to the Singaporean news company.
It said that iProperty, part of Malaysian investment firm Catcha Group's company portfolio was founded in 2007 by Grove, a Malaysian permanent resident living in Kuala Lumpur, who invested only A$300,000 (RM 920,532) in it.
Grove, who is also co-founder of Catcha Group, will be stepping down in light of the acquisition.
iProperty was listed on the Australian Stock Exchange in 2009 at 25 Australian cents (76 sen), reaching a high of A$3.93(RM12.06) in March last year. It closed at A$3.84 (RM11.78) yesterday.
Catcha's director of corporate communications Peggy Lee, said the acquisition was a fantastic growth indicator for Southeast Asian start-ups.
“This deal shows that sizeable companies can be built in Southeast Asia and that global players are willing to write big cheques to move in,” she said, adding that it should also be an inspiration to entrepreneurs.
The acquisition strengthens REA's position in offering online real-estate classified advertising across the Asia-Pacific region.
