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IPGA Ltd (ASX: IPP), through its wholly-owned subsidiary, iProperty Group Asia Pte Ltd, has entered into an agreement to acquire the GoHome network of the market-leading property websites in Hong K
ong. The GoHome network’s websites power the Yahoo Hong Kong real estate channel and include GoHome.com.hk, House18.com and other related websites. The GoHome network is number one in both number of listings and user traffic in the Hong Kong market, as measured by ComScore1.
The GoHome sites, which are all Chinese language based, reach over 45% of all unique Hong Kong internet users looking for property online each month, a result that is more than four and a half times better than the nearest competitor. In total, over 578,000 unique users view GoHome network property listings each month.
The GoHome network is currently profitable and cashflow positive.
Patrick Grove, Executive Chairman of IPGA, noted, "We are delighted with the acquisition of the GoHome network in Hong Kong. With over 96%2 of the population using Chinese as their primary language, it was clear that the market leader would certainly be a Chinese language site.
"Our experience in Singapore and Malaysia makes it far simpler for us, as a regional player, to integrate the GoHome network of sites into our organization," he said.
"Not only does GoHome enjoy a significant leadership position in the Hong Kong online property market, it also represents an exceptional strategic acquisition for our company. Hong Kong is a unique place, with the highest broadband internet penetration in the world3, and a unique property buying and investing culture.
"We are extremely pleased that we have been able to acquire the clear leader in the online property market. IPGA sites and listings are now viewed by over 754,000 unique users in Asia Pacific each month4", said Mr Grove.
"The Hong Kong property advertising market for 2007 is expected to exceed HK$2.3 billion5 (approx A$324 million), making it 65%6 of the size of the Australian real estate advertising market in 2006. As such, this is potentially an extremely lucrative market for IPGA as that advertising money moves online in line with global trends," he added.
On completion of the transaction, IPGA will pay HK$9.5 million (approx A$1.36 million) in cash. The acquisition is contingent on satisfactory financial and legal due diligence, and final approval from the vendor’s members. It is expected that the acquisition will complete in late November.
The acquisition of the GoHome network sees IPGA add to its market-leading online property operations7 in Singapore, Malaysia and the Philippines, and represents its first acquisition since its listing on 11 September 2007.
IPGA continues to seek further strategic acquisitions of leading property portals throughout regional markets.
1 ComScore Networks MyMetrix Media Trends Report, Hong Kong, August 2007.
2 Hong Kong SAR Census and Statistics Department, 2006 Census.
3 www.internetworldstats.com
4 ComScore Networks MyMetrix Media Trends Report, Asia Pacific, August 2007.
5 admanGO, Hong Kong, Media Monitoring Report, September 2007.
6 Frost and Sullivan Independent Market Report, 19 June 2007.
7 Ibid. | 
