PropertyGuru agrees to go public through US$1.78b deal with Peter Thiel SPAC

[SINGAPORE] Singapore's online real estate firm PropertyGuru agreed to go public through a merger with Bridgetown 2 Holdings, the blank-check company backed by billionaires Richard Li and Peter Thiel, seeking to spur growth as its domestic property market sizzles.

The combined entity is set to have a market value of about US$1.78 billion, the companies said in a statement on Saturday. The deal will include a private investment in public equity, or PIPE, of about US$100 million from investors including Baillie Gifford, Naya, REA Group, Akaris Global Partners and one of Malaysia’s largest asset managers. REA Group also committed to invest an additional US$32 million, according to the statement.

PropertyGuru, backed by TPG Capital and KKR & Co, has benefited from a pandemic-induced real estate boom that has pushed Singapore's home prices to record. The company has also expanded to Vietnam, Indonesia, Malaysia and Thailand, making it the largest real estate marketplace in Southeast Asia.

Bloomberg News first reported PropertyGuru's talks with Bridgetown 2 in June. The special purpose acquisition company raised about US$300 million in a US initial public offering in January and its shares closed at US$9.94 on the Nasdaq on Friday, compared with a debut price of US$10 and a high of US$13.59 in February.

Founded by entrepreneurs Steve Melhuish and Jani Rautiainen in 2007, PropertyGuru has become a household name in the property-crazed Singapore. The company scrapped plans for an IPO on the Australian stock exchange in 2019 over valuation concerns. In September, it announced US$300 million in new funding from investors including existing backers KKR and TPG.

The company is taking advantage of investor interest in South-east Asia, a region with about 650 million people and an emerging technology startup scene.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

Singapore's Grab Holdings is going public via a blank-check firm by the end of this year, while Indonesian e-commerce firm Bukalapak.com is set to list on the local exchange in August. GoTo, the biggest Indonesian tech startup valued at US$18 billion, is expected to follow suit.

In May, PropertyGuru agreed to acquire all of the shares in REA Group's operating entities in Malaysia and Thailand, marking the biggest acquisition in its history. As part of that deal, REA Group, which is majority-owned by Rupert Murdoch's News Corp empire, will get an 18 per cent equity interest in PropertyGuru and appoint a director to its board.

BLOOMBERG