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PropertyGuru to go public in a combination with SPAC, sponsored by Peter Thiel, at US $1.35 billion valuation

PropertyGuru, Southeast Asia’s largest digital property marketplace, has announced a merger with Bridgetown 2 Holdings, a special purpose acquisition company (SPAC) created by Pacific Century Group and Peter Thiel’s Thiel Capital, in order to go public on the New York Stock Exchange (NYSE).

According to a release, the merged business will have an enterprise value of about US$1.35 billion and an equity value of approximately US$1.78 billion at completion.

A concurrent US$100 million private placement (PIPE) of common stock anchored by Baillie Gifford, Naya, REA Group, Akaris Global Partners, and one of Malaysia’s leading asset managers, priced at US$10.00 per share, is projected to yield up to US$431 million in total revenues.

The REA Group has also pledged a further US$32 million investment. 100% of KKR, TPG Group, and REA Group’s stock will be rolled into the merged business.

Subject to regulatory and shareholder approvals, as well as other normal closing conditions, the deal is expected to conclude in Q4 2021 or Q1 2022.

After the acquisition is completed, PropertyGuru’s management team, led by CEO and MD Hari V. Krishnan and CFO Joe Dische, will continue to oversee the public firm.

PropertyGuru, which was founded in 2007, offers digital property marketplaces that connect buyers and tenants with sellers and landlords, as well as digital marketing services for agents and developers, SaaS-based sales process automation for developers, a digital mortgage marketplace and brokerage, and property data consulting services for banks, valuers, and developers.

According to the firm, it now contains over 2.8 million monthly real-estate listings and serves 37 million monthly property searchers and 49,000 active property agents spanning Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

In the four years leading up to the COVID-19 pandemic, PropertyGuru’s growth business had average annual revenue growth of over 25%, and its Pro-forma revenue is anticipated to rise at a compounded annual growth rate of 29% between CY20A and CY25F.

“We have a story to be told and found the right partner to help us tell it to public market investors. This process of becoming a public company will provide us with greater financial resources to do what we do best — helping people find, finance, and own their homes in an efficient and transparent manner. We believe the strategic, proactive steps that we have taken over the past 18 months will enable us to stay ahead of the market’s evolving needs, which are increasingly being shaped by the growth of affluent and digitally enabled populations living in cities across Southeast Asia,” said Hari V. Krishnan.

Peter Thiel, President, Thiel Capital, said: “The market for property is probably the oldest market in the world, and only now is it beginning to change rapidly. As PropertyGuru spearheads that change in Southeast Asia, Bridgetown 2 will provide capital and expertise to accelerate it even further.”

Richard Li, Founder, and Chairman, Pacific Century Group, said: “Southeast Asia is a unique market in that it has very high economic growth but lacks quality services in many sectors. Fast-growing middle-class, increased urbanisation, and technological disruption create a unique combination. We recognize the transformational impact of these long-term trends and are focused on operating our own core business and investing in local champions that are successfully leveraging technology to reshape the region’s economy and how people carry out their everyday lives.”

PropertyGuru struck an agreement in May to fully purchase REA Group’s Malaysian and Thai operations.


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