Internet-based property player realestate.com.au has sold off its trans-Tasman operation two years after striving to gain a foothold in the New Zealand marketplace.
The company has sold its 26 per cent stake in New Zealand real estate site RealENZ to fellow shareholder the Real Estate Institute of New Zealand for an
undisclosed fee.
It originally acquired the shareholding for A$1.27 million ($1.47 million) two years ago.
The sale marks the end of a strategic move by realestate.com.au to establish a common trans-Tasman internet real estate platform in order to increase the exposure for properties across the two markets.
There were no plans to re-enter the New Zealand market in the foreseeable future, the Australian company's chief executive Simon Baker said.
"It's a relatively small market and as such, it was always going to be tough for a business over there. We had a 26 per cent shareholding so there wasn't control of the business," he told the Australian Financial Review.
Instead, the company will focus on expanding its Australian market.
"Although we have about 2000 agents using the service, that's obviously not the complete market and there's still a lot of work to be done here," Mr Baker said.
- NZPA
