In a groundbreaking move that underscores the strength and potential of the United Arab Emirates’ real estate market, , a prominent UAE-based real estate platform, has raised an impressive $90 million in debt financing from . This strategic investment not only sets the company’s valuation at a staggering $1 billion but also enables to buy out its first institutional investor, BECO Capital, marking a significant milestone in the startup’s journey since its inception in 2007.
The Rise of Property Finder
Founded in 2007, has emerged as a leading player in the UAE’s thriving real estate sector. With a strong presence in the UAE, Qatar, Bahrain, and Egypt, the company has successfully navigated the market’s challenges and opportunities, securing a total of $142 million in funding until 2018. This latest investment from not only validates business model but also highlights the confidence of international investors in the UAE’s real estate market.
Buyout of
One of the most significant aspects of this deal is buyout of BECO Capital’s entire stake. As the first institutional investor in the company, BECO Capital played a crucial role in early-stage funding round. The successful exit of BECO Capital with a strong return on investment is a testament to growth and the trust that the BECO Capital team placed in the company’s vision and leadership.
Dany Farha, Co-Founder & Managing Partner of BECO Capital, expressed his excitement about the massive opportunity that lies ahead for , stating, “As we exit our investment, which has produced true venture returns for our investors and prepare to sunset the fund, we remain excited at the massive opportunity that still lies ahead for to continue to grow and serve its customers across the region in one of the largest sectors across the regional economies and we will be rooting for them along their continued journey.”
Continued Commitment to the Real Estate Market
Michael Lahyani, CEO and founder of , expressed his gratitude towards BECO Capital and reaffirmed the company’s unwavering commitment to the real estate market. With a focus on driving strong returns for its ecosystem, aims to capitalize on the massive opportunities that lie ahead in one of the largest sectors across the regional economies.
“The trust that the BECO Capital team and Dany Farha invested in us, since backing us 11 years ago, underscores the quality of our operations and the resulting outcomes. Our commitment to the real estate market stands firm, as we aim to continue to drive strong returns for our ecosystem,” said Lahyani.
The UAE’s Thriving Real Estate Market
The UAE’s real estate market has witnessed tremendous growth in the aftermath of the COVID-19 pandemic, largely due to the government’s efforts to attract the world’s wealthy to the emirate. Despite concerns about the sustainability of a market growing at a 50% rate, CEO believes that the market is heading towards a soft landing, with prices expected to stabilize in the near future.
“We’ve seen tremendous growth in the real estate market across the entire UAE, not just Dubai,” said Lahyani. “A real estate market that grows at 50% is not going to be sustainable for the long run and everybody knows that. What we’re seeing right now is a transition from a hyper growth market to a market that is going to continue to grow but in a more sustainable way.”
Expansion Plans and Market Share
With a strong foothold in the UAE, Qatar, Bahrain, and Egypt, is now focusing on increasing its market share in Saudi Arabia and Turkey. The company’s expansion plans are a clear indication of its confidence in the region’s real estate sector and its ability to navigate the challenges and opportunities that come with growth.
success has not gone unnoticed by its competitors, with other classified platforms such as Dubizzle and Bayut, whose parent company is backed by Affinity Partners, the investment firm of Donald Trump’s son-in-law Jared Kushner, also vying for a share of the market. However, strong brand recognition, extensive listings, and user-friendly platform have helped it maintain its position as a market leader.
The Role of International Investors
The $90 million debt financing from is a testament to the growing interest of international investors in the UAE’s real estate market. , an investment firm with offices in San Francisco, New York, and London, specializes in partnering with technology businesses and has a proven track record of successful investments.
The fact that this is first investment of this kind in the UAE highlights the attractiveness of the region’s real estate sector to global investors. With the UAE’s strategic location, business-friendly policies, and thriving economy, it is no surprise that international investors are keen to tap into the potential of the country’s real estate market.
The Role of Advisors
The successful completion of this deal would not have been possible without the expertise and guidance of advisors. JPMorgan & Chase Co. and White & Case acted as advisors to on the debt deal, providing valuable insights and support throughout the process.
The involvement of such reputable advisors underscores the significance of this deal and the importance of having the right partners when navigating complex financial transactions. Their expertise and experience played a crucial role in ensuring the smooth execution of the deal and positioning for future success.
Conclusion:
successful debt financing round and buyout of BECO Capital mark a significant milestone for both the company and the UAE’s real estate market. With a valuation of $1 billion and the backing of international investors like , is well-positioned to capitalize on the massive opportunities that lie ahead in the region’s real estate sector.
Read more on CrunchDubai about Real Estate:
As the market continues to evolve and mature, commitment to driving strong returns for its ecosystem and expanding its presence across the region is a testament to the company’s vision and leadership. With its strong brand recognition, extensive listings, and user-friendly platform, is poised for continued success in the years to come.
The involvement of international investors like and the guidance of reputable advisors like JPMorgan & Chase Co. and White & Case also highlight the growing attractiveness of the UAE’s real estate market to global investors. As the country continues to strengthen its position as a hub for business and investment, it is likely that we will see more such deals in the future, further cementing the UAE’s status as a leading destination for real estate investment.
Vasilii Zakharov
The recent $90 million funding round of Property Finder signals a bold and ambitious strategy for the company. This significant investment, by attracting heavyweight players, returning investors, highlights the strategic position of the real estate seeker within the evolving real estate landscape.
Ultimately, the $90 million Property Finder coup represents a significant shift in the real estate landscape.Its success depends on its ability to use this funding strategically and effectively to drive growth, innovation, and ultimately market dominance. The impact of this step will be closely monitored by both players and consumers of the industry.