Blackstone and European private equity firm Permira enter Dubai market with acquisition of Lianjia Property Finder in the Middle East

Private equity firms Permira and Blackstone recently jointly invested $525 million in Property Finder, a Dubai-based real estate information platform (similar to China's Beike), demonstrating their confidence in the continued prosperity of Dubai's real estate market and their belief that it is gradually breaking free from its historically volatile "boom-and-bust" cycle.

The two firms jointly announced on Tuesday that they had acquired a minority stake in the property classifieds platform. General Atlantic, which previously invested in Property Finder in 2018, partially exited the deal, though the valuation was not disclosed.

This is Permira's first investment in the Middle East, coming just months after the firm established an office in the Dubai International Financial Centre. In recent years, international buyout groups have been expanding their presence in the Gulf region, aiming to better connect with sovereign wealth funds and explore local investment opportunities.

Blackstone has been active in the Middle East for many years, initially focusing on financing, but has in recent years gradually increased its direct investment efforts, including investments in local school operators and partnerships with several regional sovereign wealth funds. In Saudi Arabia, Blackstone has established an infrastructure investment partnership with the country's sovereign wealth fund.

Property Finder is a well-known real estate classifieds website in Dubai. It was founded about twenty years ago, when Dubai's real estate industry was just beginning to show growth momentum.

Its competitors include Dubizzle and Bayut (the latter is backed by Jared Kushner's Affinity Partners and is considering an initial public offering).

Last year, Property Finder raised $90 million in debt financing from Francisco Partners to buy back shares held by its first round of institutional investors.

The company's business continues to expand and has entered the markets of Qatar, Bahrain and Egypt. It is currently focusing on increasing its market share in Saudi Arabia and Turkey.

Since the global epidemic, Dubai's housing prices have risen sharply, and many high-net-worth buyers continue to allocate funds to the high-end residential market.