A privately owned internet-based property advice business chaired by former REA Group head Simon Baker has flagged plans to list as it seeks to tap investors for $6 million. Real Estate Investar Group, which provides residential investment property information, data services and investment tools, has outlined float ambitions as it experiences a growth spurt on the back of the booming housing market.
“(Real Estate Investar Group) hopes to list on the ASX in the future when it is of sufficient scale and market conditions are favourable for ASX listing,” the group’s prospectus said, without putting a timeframe on the move.
The business grew out of a property investment magazine launched in 2006.
It changed tack to offer online search, analysis and property tracking a couple of years later and now has more than 2500 paying subscribers and a database of more than 95,000 active and potential property investors. The group has also set up a private database that contains more than $9 billion of residential property analysis and in-depth portfolio information.
The raising, for 20 million shares at 30c per share, would value the business at $30.1m if fully subscribed. While the business is still making losses — with almost $3.7m racked up so far — its growth profile was compared with Asia-based online property advertising service iProperty and online casual jobs service Freelancer in the raising document.
The group has poured funds into product and market development for several years and last financial year revenues hit $3.8m. Mr Baker said in a letter to investors that the business had demonstrated compound annual revenue growth of 54 per cent since the 2007 financial year, including a 47 per cent revenue jump last financial year.
The group has recruited former Volante Group chief executive Ian Penman as it seeks to launch new products and strike up more industry partnerships. Mr Penman had 18 years at IBM and spent 15 years as the chief executive of Compaq Computer Corporation.
The group already works with Fairfax Media’s APM and Domain.com.au divisions and New Zealand-based property data service CoreLogic.
It also flagged further international expansion beyond Australia and New Zealand.
Mr Baker said funds put into developing new products should attract more customers and make the service more compelling for existing subscribers. “This should result in a profitable business capable of international geographic expansion,” he said.