In a challenge to Rightmove and Zoopla’s new homes businesses, investors are being invited to back What House? and buy into a chunk of its property portal.
Yesterday, editorial director Rupert Bates wrote to his LinkedIn contacts saying: “WhatHouse? is the leading media brand in the new homes market, and with house building set for major growth in the future, you have the chance to own a piece of a dynamic property portal.”
The offer by What House Digital Limited, which owns the What House? property portal, is live on the platform Syndicate Room which says it offers “intelligent equity crowdfunding”.
What House? is looking for £500,000 in its current first tranche of fund raising. Next March, it plans a new share issue to raise more.
It is currently offering investors shares priced at £4.46, with a minimum subscription of £1,000. Closing date for the fund raising is January 10. The company said it is committed to returning 30% of its pre-tax profits to shareholders.
In its memorandum to potential investors, it says the WhatHouse brand is synonymous with the house building sector in the UK, through the portal, its newspapers, its awards and Show House magazine.
It goes on: “The dominant online players are Rightmove and Zoopla with a combined market capitalisation over £2.5bn and £1bn respectively. Due to monopolies’ and mergers legislation the top two companies cannot create a single dominant entity and instead look to acquire other entities within the market place to strengthen their positions.
“Whilst Rightmove and Zoopla are undoubtedly successful businesses, the core advertiser base of estate agents and housebuilders dislike the high monthly fees they have to pay.
“We believe a more moderately priced proposition can deliver the sales leads and instructions that they require.”
The portal made £1.1m revenue in the year to July 2015, breaking even or with a small profit. Developers pay to have their schemes listed and for a fee, can access the database of buyers. \It estimates that by July 2017, it will have a £7m turnover with pre-tax profits of £1.4m, which will grow to £3m pre-tax profits the following year on a £10m turnover.
In 2013, What House? expanded its portal to include estate agency listings. However, it is now back to concentrating exclusively on new homes.
Managing director Daniel Hill told EYE yesterday: “We did have some traction from agents, but we realised that our pedigree and heritage is to do with new homes.”
Anyone wanting further information can email dh@whathouse.com
Comments (7)
I just tried to find out the success rates of businesses after crowdfunding. Not surprisingly the number is difficult to come by.
Money staying firmly in my wallet.
😉
Another “great idea” looking to disrupt the market run out of money as has not taken off as they had expected. Banks won’t lend so looking to mug the public.
Something about this entire plan is really rustling my jimmies. I can’t bring myself to trust it.
Why don’t they just call themselves ‘WTF!?’ and be done with it?
I have to say “The more, the merrier!”
Why?
While all these online guys battle it out amongst themselves the better off the high street agents are.
(Sweeping generalisation coming up – but I’ve yet to have a good experience…)
I think that EVERY high street agent can tell you how bad the online conveyancers are.
I bet that every buyer or seller who has used one or has been in a chain with one can tell you how bad they are.
I would love to know why (given the mounting evidence that “online” is definitely cheaper and almost guaranteed to be worse) anyone would consider that an online agent is a clever move.
I think you are right. Products have adapted well to online but services have struggled much more in comparison
Let me get this straight , he is saying rm and z are dominant but expensive , therefore I should invest £1000 in his portal …. Now that sounds expensive !!