Continuing its foray into the Australian and New Zealand proptech innovator space, the software giant has taken on commercial property lease management solution LeaseEagle.
MRI Software has called its newest acquisition “an Australian-based leader in commercial property lease management solutions for tenants in corporate, retail, healthcare and other sectors”.
Now in operation for 17 years, LeaseEagle’s clients manage more than 50,000 locations across Australia, New Zealand and South Africa and include the likes of Hoyts, Kathmandu, Billabong, SpecSavers, Priceline, and EB Games.
According to MRI, the solution provided by the proptech provider “meets a timely need”.
It has outlined how “complex” COVID-19 rent relief amendments that were made to the International Financial Reporting Standard IFRS-16 in 2020 could still be relevant to pandemic-affected commercial tenants in 2022, with LeaseEagle capabilities able to provide the reporting, analysis and data management necessary to maintain compliance with the standards.
The commercial property lease management solutions will be incorporated into MRI’s existing suite of integrated workplace management systems (IWMS) as well as their AI-based lease abstraction and intelligence solutions.
Weighing in on the acquisition – MRI Software’s fifth Australia and New Zealand addition since 2019 – the company’s managing director and senior vice-president (Asia-Pacific), David Bowie, called LeaseEagle’s addition “timely and strategic”.
“Commercial property deals in 2021 were nearly double the value of 2020 investments amid the most extensive rewrite of property leases in history. That mix of fast growth and complex change represents very high risk, and I believe this acquisition gives MRI the right solutions and expertise to help clients measurably reduce that risk,” he expressed.
He highlighted that very few tenants had retained a simple monthly rental profile over the last 18 months, commenting that many “faced variable credits, floating deferments and conditional termination rights, all of which heighten the risk of manual error that can cost organisations dearly – in some cases, as much as hundreds of thousands of dollars”.
Noting the “significant” burden this can place on large tenants especially, Mr Bowie stated: “We’re thrilled to welcome them to the MRI family.”
Equally positive about the acquisition is LeaseEagle chief executive and founder Lee Trevena, who commented: “I had each one of our 185-plus clients in mind when considering this transaction.
“My strong belief is that joining the global MRI family provides LeaseEagle customers the best of both worlds by giving them access to some of the world’s best real estate expertise, innovation, client service and support resources while maintaining everything they know and love about LeaseEagle.
“Well-loved brands rely on LeaseEagle as a single source of truth for multi-site lease management, and MRI’s history of cultivating a client-centric culture and bringing in the right talent to deliver the best value to their customers makes this the perfect fit.
“I look forward to the LeaseEagle team adding to that legacy.”
ABOUT THE AUTHOR
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.