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Multinational digital media business that specialises in property, REA Group Limited, today announced the successful completion of the acquisition of Kuala Lumpur-based property website iProperty Group.

The acquisition process began in 2014 when REA Group acquired a 17.22 per cent stake in iProperty Group, which it later increased to 22.7 per cent in July 2015. In November 2015, the company purchased the remaining shares at AU$4 (US$2.8) per share, the equivalent to AU$578 million (US$410 million).

The deal valued the iProperty Group at about AU$750.8 million (US$532.6 million).

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Arthur Charlaftis, COO, International and Developer, REA Group Limited cited the company’s goal to win the Southeast Asian market as the reason behind the acquisition, as iProperty Group has strong presence in Hong Kong, Indonesia, Thailand and Malaysia, with leading position in Singapore and Philippines.

He added that Southeast Asia is the world’s fastest-growing real estate market with a population of more than 500 million people.

“We know that consumers in Southeast Asia are online and connected. We would therefore expect that the advertising spend will migrate rapidly towards online channels to mirror consumer media consumption,” said Charlaftis in a written statement.

“These factors have driven our interest in the Southeast Asian market, and in particular, in iProperty Group, which has a demonstrated understanding of the market, the customers and what it takes to continue to grow and succeed in this industry,” he added.

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In the same statement, iProperty Group CEO Georg Chmiel stated the company will maintain its original brand, and continue operations and business as per normal.

“We have strong synergies with REA Group and this acquisition is a major accelerator as this significantly enhances the growth profile for both companies … We are now just part of a bigger family and today it is an important milestone that propels us into a future rich with opportunity for our customers, our people, and our company,” he concluded.

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