REA Group Expands into Share Accommodation with $25 Million Flatmates.com.au Acquisition
Real estate business REA Group, majority owned by News Corporation, is set to acquire Flatmates.com.au for $25 million as part of its expansion into the share accommodation market. The deal involves REA acquiring 100 percent of Flatmates and potentially forming an international joint venture with the website’s founders.
The purchase will be financed using REA’s cash reserves, with additional payments contingent on Flatmates’ performance under its new ownership. The move reflects REA’s recognition of the rapid growth in the share accommodation segment and its desire to play a more active role in helping consumers find a home at any stage of the property lifecycle.
Tracey Fellows, CEO of REA, emphasized the company’s goal of providing enhanced services to consumers involved in renting, leasing spare rooms, and property investment. She expressed enthusiasm about the acquisition, highlighting the wide range of individuals involved in the share accommodation market.
Following the completion of the purchase, Thomas Clement, co-founder and CEO of Flatmates, will continue in his role. Clement, along with co-founder Andrew Maloney, sees the acquisition as an exciting and natural progression for Flatmates. They believe that integration with traditional property sectors will improve the experience for their current audience as well as renters, homeowners, and property investors.
According to Experian, a data and marketing business, Flatmates.com.au receives 2.8 million website visits and facilitates 14 million flatmate searches per month.
The acquisition of Flatmates.com.au is the latest addition to REA’s portfolio, following its $580 million acquisition of the iProperty Group in November of the previous year. In that deal, REA initially held a 22.7 percent stake in iProperty Group and subsequently purchased the remaining 77 percent, valuing the business at $750.8 million.
