The acquisition is expected to raise ESR’s presence in key markets and broaden capital and tenant relationships
REAL estate investment manager ESR Group will acquire the remaining 12.3 per cent stake in logistics real estate company Logos, which will become an indirect wholly owned subsidiary when the transaction is completed, it announced on Friday (Jul 26).
ESR held an 86.4 per cent indirect interest in Logos in early May, with the remaining stake shared among three Logos founders, namely Stephen Hawkins, John Edward Marsh and Trent Alexander Iliffe.
Marsh and Iliffe, who each hold about 6.2 per cent of the total issued shares of Logos, entered into their purchase agreements with ESR on Jul 25.
Marsh, who is also the co-chief executive officer of Logos, agreed to sell his stake for a cash consideration of about US$32.3 million and an allotment of 32.1 million new shares.
Iliffe agreed to relinquish his stake in the company for a total cash consideration of US$110.5 million.
The third founder Hawkins agreed to sell his 1.3 per cent Logos stake on May 31 for US$9 million in cash. The transaction was completed on Jun 20.
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ESR said that the roll-up of the founders’ stakes, as well as Logos turning into an indirect wholly owned subsidiary, could bring about “a number of operational and financial benefits”.
This includes a greater presence in key markets, broadened capital and tenant relationships, as well as greater market certainty from operating as a unified business.
Logos specialises in logistics real estate, and currently operates in nine markets in the Asia-Pacific. It has US$22.1 billion in assets under management, with a gross lettable area of 11.2 million square metres, its website showed.
On the other hand, ESR provides integrated fund-management services across markets such as South-east Asia, Japan and Australia.
The ESR-Logos Real Estate Investment Trust, which is listed on the Singapore stock exchange, was formed following the merger of ESR Cayman and ARA Asset Management.
Units of the trust were trading 1.8 per cent or S$0.005 lower at S$0.27, as at 11.03 am on Thursday, after the announcement.
