All top 20 developers in Thailand subscribe to its services: iProperty
Thai market spends US$91mil on real estate advertising each year
ASX-listed and Kuala Lumpur-based iProperty Group Ltd, which operates a network of property portals across the region, said it has acquired Thai-based real estate portal ThinkOfLiving.com, which would further expand its market presence in Asia.
Final financial terms were not disclosed, but in a Feb 13 filing with the Australian Securities Exchange (ASX), iProperty said the acquisition was to be funded from existing cash reserves, the future expected profits of the Thailand business, and the issuance of shares to the vendors.
The expected purchase price consists of a base payment of approximately A$6 million (US$4.6 million) in cash and A$2 million (US$1.5 million) in newly issued shares, as well as a variable component depending on the financial performance of the business from 2015-2017.
“The Thai market is estimated to spend A$120 million (US$91.4 million) on real estate advertising each year, with the online share of those dollars at a similar level to that of Malaysia five years ago,” said iProperty managing director and chief executive officer, Georg Chmiel.
“ThinkOfLiving.com already attracts more of those dollars than any other player,” he claimed.
ThinkOfLiving.com is already profitable and has a strong focus on the property developer segment, iProperty said in a statement.
All top 20 developers in the country subscribe to its services, and it has a total of 106 property developers currently active as clients.
“The acquisition accelerates iProperty Group’s growth strategy, substantially diversifies our business streams, and reinforces our leadership position within the region,” said Chmiel (pic).
“We will now have a substantially broader portfolio with established global platforms and channels to better serve our customers and consumers.
“The acquisition brings the total number of developer advertisers on iProperty Group websites to approximately 500 across the region, enabling us to offer unique and wide regional marketing opportunities to real estate developers and agencies who would like to target buyers in multiple Asian countries,” he added.
Thailand, with its 68 million inhabitants, has a growing property market with more than 180,000 property sales per year for the Greater Bangkok Region, iProperty said.
Property prices have historically grown at approximately 5% per annum, according to a study by real estate group, Engels & Voelkers.
According to the Global Property Guide 2014, property prices in Thailand are approximately 50% more expensive than those in Malaysia – with the market ready for a large scale recovery in the years immediately ahead, it added.
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