Property Finder Secures $90 Million in Debt Financing for Share Repurchase Transaction
Dubai-headquartered Property Finder Secures $90 Million in Debt Financing to Repurchase Shares
Property Finder, the leading online real estate platform based in Dubai, has successfully secured $90 million in debt financing from Francisco Partners to facilitate the repurchase of shares held by its initial institutional investor, BECO Capital. This move highlights the sustained interest in the flourishing real estate market in the UAE, both domestically and internationally.
The buyback of BECO Capital’s stake, a prominent regional venture capital firm known for its investments in successful entities like Careem and Fetchr, has not disclosed specific details of the deal. However, Property Finder has emphasized that BECO Capital exited the investment with a significant return.
Michael Lahyani, the CEO and founder of Property Finder, expressed confidence in the robust growth of the real estate sector across the UAE, beyond just Dubai. With a valuation of approximately $1 billion, Property Finder now joins the limited group of Middle Eastern unicorns.
The surge in Dubai’s real estate market post-COVID has been attributed to the government’s efforts to attract high-net-worth individuals to establish a presence in the emirate, a strategy that sets it apart from other major global markets.
Lahyani also highlighted the transition of the domestic real estate market towards a more balanced phase, with prices expected to stabilize. He stressed the importance of moving towards a more sustainable growth trajectory, acknowledging the unsustainability of a market experiencing 50% growth.
Established in 2007 to capitalize on Dubai’s growing real estate sector, Property Finder has expanded its presence across the region, including Qatar, Bahrain, and Egypt, with a focus on increasing market share in Saudi Arabia and Turkey. General Atlantic invested in the company in 2018, and JPMorgan & Chase Co. and White & Case advised Property Finder on the debt financing, which marks Francisco Partners’ first investment in the UAE real estate sector.
