Post-merger integration of global asset management platform

In early 2022, ESR acquired ARA and its subsidiary, LOGOS, for USD 5.2 billion. In early 2024, KordaMentha was engaged to integrate ESR and LOGOS.

ESR and LOGOS manage a combined industrial,logistics and data centre real estate asset portfolio with a total AUM of USD 65 billion. Together they offer a vertically integrated assetmanagement platform including development,property management, and funds managementand functions.

The businesses primarily derive income from three divisions – asset/fund, property, and development management. It also derives income from acquisitions, leasing, and co-investment.

With a global footprint of 16 business units, each business included these three front-end divisions and back-office functions. As part of this engagement, ESR and LOGOS operated nine common business units that required integration. 

Outcomes achieved

• USD 24 million in synergy opportunities were identified, totalling in ~10% of operating cost base.

• A comprehensive synergies model was developed for Executive members, with opportunities related to redesigned operating model options, the removal of duplication, recommended financial controls, and alignment of processes and policies. 

• ESR and LOGOS accounts were rconciled, aligned, and normalised to create a baseline like-for-like comparison of the businesses. This informed the poposed integrated financial model, with operating metrics built in to create and analyse indivators of efficiency across business units. 

• Worked alongside senior leadership and Board  to align on desired model of operation and leadership structures across business units across their global platform.

• Prepared detailed integration roadmaps for each business function to ensure financial, legal and compliance requirements were met. 

• Supported and prepared the Executive team for the integration.