REA Group to acquire almost 20% of non-bank lender’s shares

REA Group LTD (ASX: REA) has announced that it has agreed to acquire a 19.9 per cent interest in digital non-bank lender Athena Home Loans (Athena).

This acquisition is set to bolster the partnership between REA Group and Athena. A strategic partnership was first formed in 2022 between REA and the lender, which brought together Athena’s home loan products with the distribution network of Mortgage Choice.

Last year in June, REA released the Mortgage Choice Freedom suite of white label products that were developed in collaboration with Athena, subsequently delivering $1.2 billion in settlements in the financial year 2024.

Up to $62 million has been considered for the transaction and has been funded from REA Group’s existing cash reserves. The purchasing of Athena’s shares will see REA take two seats on the lender’s board.

Owen Wilson, REA Group CEO, said the company “continues to invest in new technology to accelerate its strategy” while delivering “greater value to consumers, customers, Mortgage Choice brokers and shareholders”.

“REA’s proposed investment in Athena will further enhance our existing partnership and reinforces our commitment to providing Australian home buyers with greater choice and a seamless consumer experience when finding and financing property,” Wilson said.

“Growing our national broker network and evolving our digital mortgage offering for the 12 million Australians who now visit realestate.com.au is an important part of our financial services strategy.

“An equity investment builds on the success of our innovative Mortgage Choice Freedom home loan products and forms a strong alliance to support the delivery of our strategy, while also benefiting from Athena’s growing loan portfolio.”

Co-founder and CEO of Athena, Nathan Walsh, said the lender is committed to “providing Australians with alternative funding solutions that are fair and transparent”.

“Athena is on an exciting growth trajectory and we’re thrilled to have the support of a culturally-aligned company like REA, building on the proven success of our partnership to date,” Walsh said.

“REA joins a strong list of Athena investors, and we are proud to be working with this industry leader to continue our missions of changing home loans for [the] good [of] all Australians.”

The proposed investment is expected to be completed over one to two months and is subject to certain conditions such as regulatory approval.

More to come...

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Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.