News Corp's property media business has entered an agreement to transfer ownership of Singapore-based online real estate platform Property Guru to Swedish private equity fund EQT, via it's Asian-focused buyout fund EQT Private Capital Asia.

The deal sees REA Group divest its 17.2% stake in PropertyGuru Group for US$6.70 per share, valuing the company at approximately US$1.1 billion (A$1.649 bn).

The decision follows a competitive process run by a Special Committee of the PropertyGuru Board after major shareholders, TPG and KKR, who hold over 56% of PropertyGuru ordinary shares, expressed their intention to realise their investment. PropertyGuru operates leading property sites in Malaysia, Singapore, Thailand and Vietnam.

REA Group expects to receive approximately A$286m from the sale, with a net carrying value of A$136m, resulting in a non-core gain of approximately A$150m to be recorded in FY25. The acquisition of PropertyGuru by EQT is subject to approval by PropertyGuru’s shareholders and receipt of regulatory approvals. The transaction is expected to close in Q2 or Q3 in FY25.

REA Group Chief Executive Officer, Owen Wilson, commented on the divestment, "EQT’s offer represents a compelling price. We wish the PropertyGuru management team well as the business takes its next steps under new ownership. Our global growth strategy remains focused on our Indian business which has significant momentum and represents an outstanding opportunity."

REA Group is a multinational digital advertising business specialising in property, operating Australia’s leading residential and commercial property websites, including realestate.com, flatmates.com, and Mortgage Choice.