This article is from the Australian Property Journal archive
ESR has bolstered its industrial property market-leading position in Asia Pacific after sealing the deal to buy out LOGOS’ co-founders.
As previously reported by Australian Property Journal, ESR was in talks with the remaining two co-founders John Marsh and Trent Iliffe after co-founder Stephen Hawkins agreed to sell his stake in the company last month.
ESR has acquired the remaining 13.6% interest in LOGOS, which will significantly extend ESR’s lead over its competition.
Founded in 2010, LOGOS has US$ 23 billion of assets under management and a portfolio of 184 industrial properties in located in Australia, China, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore and Vietnam.
By taking full control of LOGOS, ESR will become the owner of some of Australia’s best industrial and logistics assets, including the Amazon robotics fulfilment centre, Australia’s largest logistics facility, a $500 million estate in Sydney’s Eastern Creek, and the $4.2 billion Moorebank Logistics Park.
LOGOS will be fully integrated into ESR’s US$156 billion AUM business with a combined US$71 billion of New Economy AUM, a US$14 billion development workbook, which is the largest in APAC, growing Data Centre and Infrastructure platforms, and market leading positions in all major APAC markets, including Australia and New Zealand, Japan, South Korea, Greater China, Southeast Asia and India.
In Australian and NZ, the combined platform is a top two new economy manager and is on track to become number one, upon completion of the largest development pipeline in ANZ.
“As a united company, we will unleash the full potential of our combined fund management and development platform spanning various sectors and geographies. Coupled with our growth engines in Logistics, Data Centres, Infrastructure and Life Sciences, our integrated platform further enables us to deliver exciting opportunities for our people, partners, investors, customers, and the communities where we operate,” Stuart Gibson and Jeffrey Shen, ESR Group o-founders and vo-CEOs, said.
Philip Pearce, ESR group deputy CEO, said the acquisition will strengthen ESR’s strategic position in the real asset sector.
“We are bringing forward this acquisition to create a unified platform that enhances our collective strengths, fosters innovation, and drives sustainable growth,” Pearce added.
ESR stepped into LOGOS as a major owner in 2021 after it acquired ARA Asset Management in 2021.
At the time, it held an 86.4% interest in LOGOS with the remaining 13.6% interest held by the three founders.
ESR is the largest real estate manager in Asia, 7th largest globally and is a major owner in ASX-listed Cromwell Property Group.
As part of the acquisition, Marsh will take on a leadership role within the group as chair of the combined infrastructure business, as well as chair of the combined ANZ platform. He will also join the ESR Group Investment Committee.
“I look forward to contributing to ESR’s continued success by driving the Infrastructure platform – a key emerging growth engine for the business,” Marsh said. “In growing the infrastructure platform, I will look to build on the significant achievements already made by the team, including the over US$1 billion of equity raised and the multiple in-country renewable energy joint ventures established.”
Iliffe will remain with the group on a consulting basis for a period of six months to oversee a smooth transition process, and will thereafter pursue new endeavours outside of the group.
“Under the leadership of John and Trent over the last 14 years, LOGOS has become a new economy powerhouse with a sizeable US$23 billion in AUM. We would like to express our appreciation to John and Trent for their entrepreneurial prowess, collaborative spirit, and dedication to the business.
“We look forward to working with John to complete the integration of the LOGOS business and leverage our collective strengths and innovation to drive sustainable growth for the Group. We thank Trent for his leadership at LOGOS and wish him the very best when he leaves the Group later this year.” Gibson and Shen concluded.
