REA Group Limited (ASX:REA) has sold its Hong Kong business, Squarefoot, to iProperty Group Limited (ASX:IPP) for $15 million.
The online real estate advertising company says it will receive 5 million iProperty shares at $3 each which will boost REA’s holding in the company to around 19.43 per cent.
Group CEO Tracey Fellows says the deal further strengthens the relationship and commitment between the companies.
REA group says it will have the opportunity to appoint a representative to the iProperty Board as part of the deal.
REA Group reported a net profit of $149.8 million in the 2014 financial year.
