- Property Finder secured $90 million in debt financing from Francisco Partners to buy out BECO Capital.
- Founded in 2007, Property Finder has expanded from the UAE to Qatar, Bahrain, Egypt, Saudi Arabia, and Turkey.
- The buyout allows BECO Capital to exit with a strong return on its investment.
- CEO Michael Lahyani noted the UAE’s real estate market shift from hyper-growth to sustainable growth.
- Francisco Partners’ investment is their first of this kind in the UAE, facilitated by JPMorgan & Chase Co. and White & Case.
- Property Finder’s valuation has reached approximately $1 billion, positioning it among Middle Eastern unicorns.
As per Bloomberg, Property Finder i.e. a UAE-based proptech company, has secured $90 million in debt financing from Francisco Partners. This investment will enable the company to buy out its first institutional investor i.e. BECO Capital.
It was founded in 2007 by Michael Lahyani and Renan Bourdeau. Property Finder has grown to become a leading online real estate platform in the region, providing filtered search options for properties to buy and rent.
Expansion and Market Presence
Since its inception, Property Finder has expanded its operations beyond the UAE and has established its presence in Qatar, Bahrain, and Egypt. Recently, it has shifted its focus towards increasing its market share in Saudi Arabia and Turkey. This strategic move aims to capitalize on the growing real estate markets in these countries.
Buyout of BECO Capital
The $90 million raised from Francisco Partners will be used to buy back the stake held by BECO Capital. BECO Capital, a regional venture capital firm, had previously invested in notable companies such as ride-hailing app Careem, now owned by Uber, and the failed logistics startup Fetchr.
Although specific details of the deal were not disclosed, Property Finder stated that this buyout allows BECO Capital to exit with a strong return on its investment.
CEO’s Vision and Market Outlook
Michael Lahyani, CEO and founder of Property Finder, emphasized the significant growth of the UAE’s real estate market, which has seen a boom post-COVID-19 due to government initiatives to attract wealthy individuals to the emirate.
Lahyani noted that the real estate market in the UAE, especially in Dubai, has outperformed other major global markets. He also highlighted that while the market has experienced rapid growth, it is now transitioning towards more sustainable growth rates.
“A real estate market that grows at 50% is not going to be sustainable for the long run, and everybody knows that,” Lahyani said. “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.”
Financial and Strategic Partnerships
The $90 million debt financing marks Francisco Partners’ first investment of this kind in the UAE. Property Finder’s previous notable investment was in 2018 when General Atlantic became a key investor. Competing with other classified platforms such as Dubizzle and Bayut, Property Finder distinguishes itself with its robust market presence and strategic expansions.
The debt deal was facilitated with the advisory support of JPMorgan & Chase Co. and the law firm White & Case. This strategic financial move is expected to strengthen Property Finder’s market position and support its future growth plans.
Dubai’s Thriving Real Estate Market
Dubai’s real estate market has seen remarkable growth, especially after the COVID-19 pandemic. The government’s efforts to ease regulations and attract international investors have significantly contributed to this boom. The market’s growth in Dubai stands in stark contrast to other major global real estate markets, which have faced various challenges.
Property Finder’s valuation has reached approximately $1 billion, placing it among the growing list of Middle Eastern unicorns. Lahyani attributes this success to the thriving real estate market across the UAE, not just in Dubai, and believes that the company is well-positioned to benefit from the region’s continued growth.
Future Prospects
With the recent debt financing, Property Finder is poised to strengthen its foothold in the Middle Eastern real estate market. Its focus on expanding in Saudi Arabia and Turkey aligns with its long-term growth strategy.
As the real estate markets in these countries continue to develop, Property Finder aims to leverage its expertise and market presence to capture significant market share.
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Last Updated on May 16, 2024 by Safiya K
