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REA buys stake in iProperty

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Online real estate giant REA Group has acquired a large stake in a south-east Asian property business for $106.3 million.

The owner of realestate.com.au has bought a 17.22 per cent shareholding in ASX-listed iProperty Group, an online advertising portal to real estate agents and property developers in Malaysia, Hong Kong, Macau, Indonesia and Singapore.

REA Group says it will hold discussions about being represented on iProperty Group's board.

The 31,000,000 plus shares were acquired from SeLoger.com SA, the operator of France's largest property classifieds portal, and were valued at $3.40 per share.

REA Group interim chief executive Peter Tonagh says the company is investing in markets where conditions are strong.

"This acquisition provides us with a strategic stake in one of the fastest growing real estate markets in the world," he said.

He said it also complemented its existing business in Hong Kong and China.

REA Group posts Australian property on China's myfun.com and SouFun.com websites and squarefoot.hk in Hong Kong.

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Owner of realestate.com.au buys holding in SE Asian property business for $106.3m.

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