PropertyGuru to go public through $1.8b SPAC plan

Southeast Asian online real estate giant PropertyGuru is looking to go public via a merger deal with Bridgetown 2, a special purpose acquisition company (SPAC) backed by billionaire investors Peter Thiel and Richard Li.

The SPAC agreement gives PropertyGuru an enterprise value of roughly US$1.35 billion and an equity value of about US$1.78 billion, according to a statement.

The transaction includes a fully committed US$100 million private investment in public equity with participation from Baillie Gifford, Naya, REA Group, Akaris Global Partners, and an unnamed Malaysian asset manager. Up to US$299 million will come from of cash held in Bridgetown 2’s trust account.

PropertyGuru’s Singapore office / Photo credit: PropertyGuru

REA Group has also committed to an additional US$32 million investment. KKR, TPG Group, and REA Group will roll all of their equity into the combined company.

Founded in 2007, PropertyGuru said it currently hosts over 2.8 million monthly real estate listings and serves 37 million monthly property seekers and 49,000 active property agents. It has a presence in Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

The deal comes after PropertyGuru’s annual revenue grew by about 25% on average in the four years before the onset of Covid-19. The startup plans to use the IPO proceeds to further accelerate organic growth and pursue merger and acquisition opportunities.

PropertyGuru’s management team, including CEO and managing director Hari Krishnan and chief financial officer Joe Dische, will continue to lead the public company after the transaction, which is expected to close in the fourth quarter of 2021 or first quarter of 2022, pending regulatory and stockholder approvals.

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