Dubai-headquartered Property Finder has 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 underscores the sustained domestic and international interest in the UAE’s flourishing real estate market.
The online real estate platform has successfully bought back the stake previously owned by BECO Capital, a regional venture capital firm renowned for its investments in prominent entities such as the ride-hailing giant Careem, now a part of Uber, and the logistics startup Fetchr. While specific details of the deal remain undisclosed, Property Finder emphasized that BECO Capital exited the investment with a significant return.
Michael Lahyani, the CEO and founder of Property Finder, expressed optimism about the robust growth of the real estate sector across the UAE, not limited to Dubai alone. Lahyani revealed that the company has achieved a valuation of approximately $1 billion, positioning it among the relatively small yet burgeoning group of Middle Eastern unicorns.
The surge in Dubai’s real estate market post-COVID can be attributed largely to the government’s initiatives to attract high-net-worth individuals to establish a presence in the emirate, setting it apart from the trajectory observed in other major global markets.
Lahyani highlighted that the domestic real estate market is transitioning towards a more balanced phase, with prices expected to stabilize. Acknowledging the unsustainability of a market experiencing 50% growth, he emphasized the need for a shift towards a more sustainable growth trajectory.
Established in 2007 to leverage Dubai’s burgeoning real estate landscape, Property Finder received an investment from General Atlantic in 2018. In the classified platforms arena, it competes with industry peers such as Dubizzle and Bayut. The company has significantly expanded its footprint across the region, including Qatar, Bahrain, and Egypt, focusing on augmenting its market presence in Saudi Arabia and Turkey.
JPMorgan & Chase Co. and White & Case advised Property Finder on debt financing, marking Francisco Partners’ inaugural investment in the UAE real estate sector.
