JLL has acquired a 20 percent stake in PropNex International, the project marketing arm of PropNex.
This is in line with JLL’s strategy to grow and invest its residential business in South East Asia. Since 2007, its acquisitions include Property Edge (agency/high-end project sales), DST International (international project sales), Credo Real Estate (en bloc and residential land sales, valuation) and Halcyon Real Estate (residential leasing).
Partnering with PropNex International addresses the missing link in JLL’s residential business – sales of new mass market homes.
Chris Fossick (pictured, left), Head of Singapore and South East Asia at JLL said, “Sales volume of new homes in the mass market or Outside Central Region (OCR) region rose 250 percent in the last five years compared to the previous five years. 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.”
The combination of JLL’s experience in the high-end market, and PropNex’s experience in the mid to mass market will allow a greater access to buyers in both market segments.
As one of the largest local real estate agencies in Singapore, PropNex has a network of over 5,600 salespeople and a third of the market share. PropNex International, the project marketing arm of PropNex, was founded in 2007 and has currently been appointed for about 40 projects.
170 JLL associates for residential project sales have been invited to transfer to PropNex. “Going forward, JLL will not have an associate business. All of our residential project sales business will be conducted through this partnership,” said Fossick. The partnership will also make it the largest sales force in Singapore.
He added, “This partnership with PropNex brings together JLL’s global platform and clientele with PropNex’s unrivalled local sales network and Singapore project marketing expertise.”
Additionally, developers of new projects are increasingly looking for large sales forces to support the sale of their residential projects.
Mohamed Ismail (pictured, right), CEO of PropNex said, “This strategic alliance is the result of careful selection of the right partner who shares similar core values and a common goal to achieve the highest standards of client service. We are confident that our clients, investors, developers and own sales force will benefit from the opportunities of wider global outreach with JLL’s global network and sophisticated consultancy services.”
As part of the partnership, JLL’s Head of Investments and Residential, Karamjit Singh, has been appointed to PropNex International’s board of directors which is chaired by Mohamed Ismail.
Photo by Muneerah Bee
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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