Naspers-backed Property24.com, South Africa’s largest online property site has acquired One Africa media’s Private Property, the second largest online property site in the country for an undisclosed amount ending PrivateProperty’s year long search for suitor after it rejected a deal from Ringier earlier on.
Founded in 1997 by Justin Clarke, Private Property is one of the oldest property portals in South Africa running a subscription business model for agents and unlimited adverts for a fixed fee. In August 2011 Private Property launched Private Property Nigeria and the firm says it has established a leading position by traffic, add volume and revenue and is on track to grow ten fold.
In May this year, Ringier Africa and One Africa Media (OAM) merged to form a pan-African Classifieds assets to create and grow Africa’s largest classifieds group with a new outfit dubbed Ringier One Africa Media (ROAM).
ROAM was a reaction of the changing scene of classifieds business in Africa with stronger players such as Naspers, Rocket Internet and the new Frontier Digital Ventures and the weakening One Africa Media itself with its CEO Carey Eaton gone.
According to people familiar with the deal that time, SEEK and Tiger Global needed more African based/ experienced partners on ground so they don’t lose their cash in Africa. That’s why a deal between One Africa Media, which needed new energy to drive their market penetration and domination across Africa was easily reached with Ringier Africa albeit at a lower value than expected of One Africa Media hence forming Ringier One Africa Media but BuyRentKenya and PrivateProperty opted out of the deal because they felt undervalued and PrivateProperty immediately began chasing for a buyer.
The sell to Naspers is actually great for PrivateProperty, that is if the deal is approved by relevant authorities. The deal will ensure PrivateProperty agents and buyers have a home to sell their properties and renters too have a place they can turn too apart from Property24.