Trade Me buys shares in start-up

A WELLINGTON start-up is being backed by one of New Zealand’s largest online marketplaces, with Trade Me taking a 13 per cent stake in the company.

The new business, PropertyNZ, launched in April last year and aims to provide New Zealand’s most comprehensive property website.

PropertyNZ chief executive John Holt said he was excited about the company’s prospects given Kiwis’ love of all things property, and its new backers – especially Trade Me. ‘‘We were rapt to have great support from some of New Zealand’s most successful investors and business people.’’

Trade Me Property head Nigel Jeffries said: ‘‘We like what the homes team are doing and planning to do in the property space, we like the team, we think their products are going to be helpful for agents and for consumers and we’d like to help out.’’

‘‘We’ve taken a minority stake, and it’s a small non-material investment for us.’’

Jeffries would not say how much they paid for their stake or how they would benefit from the deal. ‘‘We’re not disclosing the price as it’s commercially confidential.

‘‘We’re [also] not keen to get into the ins and outs of the deal for commercial reasons, but it’s fair to say it is a pretty simple arrangement,’’ he said.

‘‘We think they have some exciting new product ideas but we’ll let the homes team talk to the specifics of what they might bring to market when they’re ready.’’

Trade Me bought shares in start-up companies ‘‘where it makes sense’’, Jeffries said. It had a long history of investing in or acquiring start-ups.

Holt said PropertyNZ had just completed its first external investment round for its soon to be launched website.

The new website would bring together a wide range of data and information for people interested in property to view, at no cost, he said.

‘‘Buying, selling and maintaining a home is a significant challenge for most of us. We’re focused on helping Kiwis make smarter decisions no matter where they are at on their property journey.’’

People interested in the Wellington property market would be the first to benefit from the new website, with plans to extend coverage nationwide over the next few months, Holt said.