Sweden’s EQT to Acquire PropertyGuru for $1.1B as KKR, TPG Cash Out

Sweden’s EQT has agreed to buy PropertyGuru, the online real estate portal backed by fund managers KKR and TPG, in an all-cash deal valuing the Singapore-based platform at $1.1 billion, according to a Friday announcement.

Private equity firm EQT will pay $6.70 per share to acquire NYSE-listed PropertyGuru, the companies said in a release. The consideration represents a 52 percent premium to PropertyGuru’s closing share price on 21 May, the last unaffected trading day before media reports emerged that US giants KKR and TPG were exploring buyout options. The stock closed at $6.26 on Thursday.

PropertyGuru, which boasts more than 2.1 million real estate listings, is “pleased to embark on this new chapter” with the Swedish firm, said CEO and managing director Hari V Krishnan.

“As we continue to innovate and deliver value to our consumers, customers, and stakeholders across the region, EQT’s global expertise in building marketplaces and commitment to sustainable growth will further strengthen our vision to power communities to live, work, and thrive in tomorrow’s cities,” Krishnan said.

Thiel, REA, FWD to Exit

Funds managed by KKR and TPG, holding a combined 56 percent ownership of PropertyGuru’s outstanding ordinary shares, have agreed to support the deal, the companies said. Other shareholders include billionaire tech investor Peter Thiel, Australian property listing company REA and Hong Kong-based FWD, the insurance arm of Richard Li’s Pacific Century Group.

In a Friday stock filing, ASX-listed REA said it expected to receive A$286 million ($189.7 million) in proceeds from the divestment of its 17.2 percent stake in PropertyGuru.

“EQT’s offer represents a compelling price,” said REA chief executive Owen Wilson. “We wish the PropertyGuru management team well as the business takes its next steps under new ownership.”

The deal is expected to close in the fourth quarter of 2024 or the first quarter of 2025, subject to customary closing conditions, including regulatory and shareholder approvals. Upon completion, PropertyGuru’s shares will delist from the New York Stock Exchange and the company will become private, maintaining its headquarters in Singapore.

EQT is making its investment on behalf of BPEA Private Equity Fund VIII, an Asia-focused vehicle inherited by the firm when it acquired Baring Private Equity Asia in 2022 for $7.5 billion.

“PropertyGuru has firmly established itself as the leading property marketplace platform in Southeast Asia, and we are deeply impressed by the strong foundation it has built over the past 17 years as well as with its talented team,” said Janice Leow, head of EQT Private Capital Southeast Asia. “We believe our offer provides shareholders with compelling value and certainty, while strategically positioning PropertyGuru to fully harness its long-term growth potential.”

Loss Narrows

In May, PropertyGuru reported a first-quarter net loss of S$6 million ($4.5 million), narrowing from S$10.2 million a year earlier, as revenue rose 12 percent year-on-year to S$37 million. The company released the results after announcing in February that it would cut 79 jobs and close non-profitable units.

PropertyGuru ceased operations of its Indonesian marketplace Rumah.com last November, citing a need to focus on growth opportunities. The company also scrapped FastKey, a software solution connecting agents across its markets in Jakarta, Malaysia and Singapore.

Founded in 2007, PropertyGuru listed on the NYSE in 2022 via a merger with Thiel and Li’s Bridgetown 2 SPAC, in a deal valuing the combined entity at $1.78 billion in equity.