ASX-listed Real estate website realestate.com.au (REA Group) has made a foray into India after agreeing to buy 14.7 per cent of Indian real estate digital platform PropTiger for $67.9 million.
PropTiger, the only group in India which offers a full range of online and offline property services such as virtual viewing, site visits, legal and financial diligence, operates proptiger.com, Makaan.com and newly acquired site, Housing.com.
The three digital property portals take the top three spots in the Indian digital real estate market.
The group will fund the purchase with cash and said its decision to move into the Indian market was due to its long term growth opportunities.
"The market is still very early in its move to digital real estate advertising and with the urban population projected to grow from 420 million in 2015 to 583 million by 2030, the long term growth opportunities in India are clear," the company said in a release on Tuesday.
The acquisition will expand Indian listings - REA already advertises properties for sale and rent in India on its website.
"This cornerstone investment in India is aligned with our global strategy. Coupled with iProperty, it extends our footprint in Asia and strengthens our presence in a region with long-term growth potential," realestate.com.au chief executive Tracey Fellows said.
News Corp, REA's majority shareholder, is also a majority shareholder in PropTiger and will now up its stake in PropTiger to 21 per cent after the REA purchase is completed.
REA's share price leapt to $57.26 at the close of Tuesday from $57 on Monday.