Private equity firm EQT has hired investment bank Morgan Stanley to explore the potential sale of Idealista (source: Reuter), a leading Spanish property website. Sources familiar with the matter estimate that Idealista could be valued at approximately 2.5 billion euros ($2.69 billion), including debt, in a sale.
SUMMARY
– EQT has chosen Morgan Stanley to Explore sales of Idealista.
– Idealista is rumored to be worth about 2.5 billion euros ($2.69 billion), including debt.
– EQT bought the controlling stake of Idealista in 2020 for 1.3 billion euros.
– Idealista has been expanding through acquisitions in Italy and proptech.
– Private equity investors and classified European real estate businesses may be potential buyers in the second half of 2023.
– The deal is part of EQT’s strategy to reconfigure the panorama of European real estate.
EQT acquired a controlling stake in Idealista in 2020 from Apax Partners and management, valuing the company at approximately 1.3 billion euros. Since then, Idealista has grown its operations under EQT’s ownership through acquisitions of the Italian competitor Casa. it and proptech Inmovilla.
Idealista operates in Spain, Portugal, and Italy, providing agents with a wide variety of online real estate services. They provide property listings, advertising, mortgage brokerage, and data analytics. The company generates revenue by regularly charging subscription fees to agents for property listings.
According to media reports, the sales process is in its initial stages, and an auction is expected to proceed in the second part of 2023. The list of potential Idealista buyers comprises private equity investors and European and international real estate-classified companies that would like to expand their presence in Southern Europe.
In January, Spanish newspaper Cinco Dias reported that Idealista had refinanced €300 million, pushing the debt maturity to 2029 to facilitate a potential sale. Management, headed by the founder and CEO, Jesús Encinar, remains part of Idealista. Oakley Capital and Apax are private equity funds that hold minority stakes as well. Their position in the sales process still has to be defined.
Sources familiar with the situation cautioned that a deal is not guaranteed, and the specifics of the transaction may change as the process unfolds. EQT and Morgan Stanley have declined to comment on the matter.
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By Proptechbuzz
By Ravi Kumar
