Dubai-based Property Finder has received $525 million in investment in a round led by global private equity firm Permira along with Blackstone, as the emirate's real estate market continues to grow.
The combined investment by the companies in the property portal “represents a meaningful minority stake”, a joint statement on Tuesday said, without providing details about the size of the stake.
General Atlantic, a cornerstone shareholder of Property Finder since 2018, has sold part of its stake while retaining a significant minority holding.
The $350 million investment is UK-based Permira's first in the Middle East, and comes after the firm opened an office in Dubai this year. The company, which invests in private equity and credit, has approximately €80 billion ($94 billion) in total committed capital globally.
“For Permira, this investment in the region – following the opening of our Dubai representative office – underscores both our conviction in the market opportunity and our confidence in the significant growth potential of the business,” said David Erlong, partner and global co-head – consumer at Permira.
Set up in 2007, Property Finder offers property listings across the Mena region. In May last year, it raised $90 million in debt financing from Francisco Partners with the proceeds used to complete the buyback of the entire stake held by Beco Capital, the first institutional investor in Property Finder.
The platform focuses on the UAE market, with its inventory of properties allowing for options to buy and rent. The country's property market has been booming in recent years, having benefitted from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.
In Dubai alone, the volume and value of real estate transactions rose sharply in the first half of the year as more than 59,000 investors entered the market.
The number of transactions reached 125,538, up nearly 26 per cent from 99,947 during the first six months of last year, the Dubai Media Office said in July, citing Dubai Land Department data. The value of these transactions rose about 25 per cent to about Dh431 billion ($117 billion), “highlighting the strong growth momentum in the market”, it said at the time.
In July, Dubai also launched a scheme to help Emiratis and UAE residents who do not own freehold residential property in the emirate get on the property ladder.
The latest deal will “enable Property Finder to leverage both Permira and Blackstone’s international expertise, alongside General Atlantic’s global network, as it further scales its platform, expands into new markets, and captures emerging opportunities across Mena’s dynamic real estate sector”, the statement said.
Permira, Blackstone and General Atlantic have jointly invested in other online platforms, including in European classifieds platform Adevinta.
“Today’s transaction allows us to crystallise part of the value created, while importantly, we remain strongly invested in Property Finder's future,” said Chris Caulkin, managing director and head of technology for General Atlantic in Europe, Middle East and Africa.
The transaction remains subject to customary approvals.
