Owner of online real estate sites REA Group Limited (ASX:REA) has bought a 17.22 per cent stake in iProperty Group Limited (ASX:IPP) for $106.3 million.
iProperty Group is an online property business operating in South East Asia and REA has bought the shares from a French property classifieds portal named SELoger.com SA.
REA Group Interim CEO Peter Tonagh says the acquisition forms part of the company’s strategy of investing in markets where conditions are strong.
REA Chairman Hamish McLennan says the purchase demonstrates the company’s commitment to international expansion.
As a result of the transaction REA says it will start talks with iProperty Group with view to seeking representation on the board.
REA Group’s net profit climbed to $70.7 million in the first half of the 2014 financial year.
