is buying iProperty's Asia websites for $580 million

Singapore. Nicky Loh/Getty Images

News Corp-controlled REA Group, which operates, is buying iProperty’s group of real estate sites in South East Asia for about $580 million.

REA already has 22.7% of the ASX-listed property portal. It is now offering $4 a share for the rest, a premium on Friday’s close of $3.51.

The offer values iProperty at $750 million.

REA CEO Tracey Fellow says the acquisition will bring iProperty into REA’s existing portfolio of digital real estate advertising businesses.

“iProperty is strongly positioned in its respective markets throughout South-East Asia and provides REA with exposure to new geographies where we can apply our experience and know-how from existing markets,” she says.

“This acquisition further demonstrates our commitment to international expansion, and is the next step in our growth strategy in the Asian region.”

REA, about 60% owned by News Corp, will fund the acquisition mainly from new debt facilities of $480 million, with the rest from cash reserves.

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