Property News · September 30, 2019

Credit Suisse valued PropertyGuru at up to $1.13b


Credit Suisse said the company managed to continue growing despite property cooling measures in its biggest market, Singapore.
Credit Suisse has described real estate portal PropertyGuru as the next unicorn on the Australian Securities Exchange (ASX) as it values the Singapore-based company at $1.02 to $1.13 billion.
The figure is 9.7-times to 10.8-times of the 2020 forecast revenue.
PropertyGuru, which is looking at an Australian IPO, is an online real estate classifieds business that operates in Singapore, Malaysia, Vietnam, Indonesia and Thailand, reported the Australian Financial Review.
Three quarters of the company’s revenue come from real estate agents through subscription and listing fees, while the other quarter from property developers who are paying to use the sales and marketing products of PropertyGuru. Its long-term target is to get into mortgage finance.
Fund managers were told by Credit Suisse to think about a $3.4 billion addressable market across the five geographies of PropertyGuru, while considering that only a fraction of that is expected to hit the online company’s top line in the coming year.
For 2020, PropertyGuru is only expecting $105 million in revenue and $11.7 million in EBITDA, up from this year’s forecast of $85.6 million and $6.4 million, respectively. The company is not due to be profitable within the forecast period.
And while all of PropertyGuru’s businesses are offshore, the pre-IPO reports have plenty of Australian references – explaining why it seeks to list on the ASX.
Online property advertising penetration, for instance, was only four percent to 36 percent across PropertyGuru’s five main markets, but stood at 79 percent in Australia. Online ad spend was just 0.8 percent of an agent’s commission, while 15.1 percent in Australia.
Credit Suisse – which along with UBS are the lead managers to PropertyGuru’s proposed IPO – also told fund managers that the company managed to continue growing despite property cooling measures in its biggest market, Singapore. While analysts believe that the subdued conditions in Singapore will continue until next year, a rebound in residential conditions is expected in 2021.
Need help with your home buying/selling/renting process? Our handy guides will help. Or find your dream home on PropertyGuru. 
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

Source : proppertyguru.com.sg/Property Market
Read more…Credit Suisse valued PropertyGuru at up to .13b

You may also like...