– Online real estate platform Zillow Group Inc is selling more properties to New York-based investment firm Pretium Partners as it exits the business of flipping houses, Bloomberg News reported on Friday, citing people familiar with the matter.
Pretium recently bought more than 800 properties from Zillow for nearly $300 million and has signed a roughly $150 million agreement to acquire 400 more, according to the report.
The sale comes as Zillow shifts towards becoming a “housing super app”, which will integrate the currently fragmented process of buying or selling a house.
Zillow did not immediately respond to a Reuters request for comment, while Pretium declined to comment.
Shares of Zillow rose 12.6% to $53.89 in early trading, extending gains from the previous session when the company posted fourth-quarter revenue above market expectations on a strong performance in its home segment.
In November, the Wall Street Journal reported that Zillow had reached a deal with Pretium to sell about 2,000 homes from its house-flipping business, which it decided to exit due to unpredictable prices.
(Reporting by Nathan Gomes in Bengaluru; Editing by Ramakrishnan M.)
