Myhome.ie, the property portal owned by the main estate agents, may be sold following a strategic review to be carried out by a leading corporate finance house.
It is understood IBI Corporate Finance has started examining the business with a view to recommending future strategic options. A sale or further expansion by way of acquisition are the two most likely outcomes.
The site is run by a company called MyHome Limited. This company is believed to make profits in excess of €1.2 million a year. The company is owned by the following shareholders: Sherry Fitzgerald (25 per cent); Douglas Newman Good (20 per cent); Gunne Residential (20 per cent) and AIB (20 per cent).
While the site could have strong underlying value, the estate agents may be reluctant to sell such a high profile channel. It also allows consumers to electronically review properties from a number of auctioneering firms.
The remainder of the shares are owned by small investors and managing director Jim Miley. The site could be worth approximately €15 to €20 million according to some estimates. The multiples applied to Irish portal sites are hard to assess because so few have been sold.
Myhome.ie contains properties for rent and purchase and sellers dealing with the main auctioneers often take space on the site in addition to more traditional channels. The company has in the last few months acquired a large stake in the newaddresss.ie website. This site helps people moving house to alert friends and business contacts about their new address.
Property sites are increasing in popularity and more traditional outlets like newspapers have been buying them out over the last year in the UK. In 2005 the Daily Mail and General Trust, which publishes the Daily Mail and other newspapers, purchased Fastcrop plc, which owns the primelocation.com website for £48 million sterling.
Even myhome.ie itself is facing stiffer competition with sites like daft.ie targeting first time buyers. Major mortgage lenders like Permanent TSB have backed the site via banner advertising. The Irish Times also owns a property website, nicemove.ie.
Rupert Murdoch's company News International has also invested heavily in property websites and portals, with its Australian operation, realestate.com taking a large share of the market.
Myhome.ie has greatly expanded over recent years. It now encompasses a range of home and garden tips and product offerings. The site also gives advise to buyers on financing their house purchase. Several financial institutions take space on the site.
