REA buys tenancy service

Real estate classified group buys application service 1Form for $15m.

Real estate classified service REA Group (REA) has acquired a rental application service for $15 million.

In a statement to the Australian Securities Exchange, the group that owns realestate.com.au and realcommercial.com.au said it has acquired 1Form Online Pty Ltd, operator of online tenancy application service 1Form.com.

The target was established in Melbourne in 2006 and has 2.3 million registered tenants.

The 1Form.com service has been available on realestate.com.au free of charge since 2011 and REA said it intends to eliminate the annual application management and storage fee for all consumers.

REA Group CEO Greg Ellis said the acquisition is in line with the group's strategy to connect consumers with property-related services.

"1Form.com has successfully employed digital expertise to improve the property experience," Mr Ellis said.

"1Form.com supports our stated strategy to connect people with the practical services they need."

After the acquisition REA Group will continue to provide the 1Form.com service to real estate agency websites in Australia and New Zealand.

Mr Ellis last month announced his resignation from REA Group, saying he would remain in the role until a successor was appointed.