SINGAPORE - Property consultancy JLL has bought a 20 per cent stake in PropNex International, the project marketing arm of Singapore real estate firm PropNex.
The two companies announced the move in a joint press release on Tuesday but did not disclose the investment amount.
JLL has been making a number of acquisitions in recent years, buying up Property Edge, which focuses on high-end project sales; DST International, which specialises in international sales; Credo Real Estate, an expert in collective sales and valuation; and Halcyon Real Estate, which does mainly residential leasing.
JLL's head of Singapore and South-east Asia Chris Fossick said the acquisition of the PropNex International stake "addresses the missing link in JLL's residential business - sales of new mass market homes".
The move "is a considered and strategic response to Singapore's evolving residential and commercial markets", he added, noting that the number of sales in Singapore's suburban regions rose 250 per cent in the last five years over the previous five-year period.
"We believe the supply of new mass market homes will continue to dominate the residential sector and, as such, the project marketing business will inevitably continue to evolve in a similar way to the largest associate agencies," Mr Fossick said.
PropNex was founded in 2000 and is led by Messrs Mohamed Ismail, Alan Lim and Lim Yong Hock, with a network of over 5,600 salespeople.
"Working with PropNex, we not only believe that we have uniquely positioned JLL well ahead of the curve but also that, in time, the established Singapore associate agency and project sales model could be introduced to markets outside of Singapore," said Mr Ismail.
JLL's head of investments and residential, Karamjit Singh, has been appointed to PropNex International's board of directors.