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Global PropTech leader MRI Software today announces its acquisition of LeaseEagle, an Australian-based leader in commercial property lease management solutions for tenants in corporate, retail, healthcare and other sectors. Founded in 2005, LeaseEagle’s software is used by clients to manage over 50,000 locations across Australia, New Zealand and South Africa.
The solution meets a timely need as COVID-19 rent relief amendments made to International Financial Reporting Standard IFRS-16 in 2020 may still be relevant to pandemic-affected commercial tenants in 2022. As well as ensuring complex accounting standard compliance, LeaseEagle’s advanced cloud-based software reduces the risk of missing critical lease dates and makes detailed occupancy analysis across multiple real estate assets simple. It also provides data-driven reporting for better decision making, saves time and improves accuracy with automated invoicing to significantly increase business process efficiency.
MRI Software managing director and senior vice president (Asia Pacific), David Bowie, says adding LeaseEagle to MRI’s existing suite of integrated workplace management systems (IWMS) and unique AI-based lease abstraction and intelligence solutions is “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.”
Mr. Bowie explains, “Very few tenants retained a simple monthly rental profile over the last 18 months. 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.
“For large tenants, the complexity and burden for compliance and accuracy with data-intensive lease accounting standards is significant. LeaseEagle provides those organisations with the ability to centralise all lease and franchise information, gain real-time reporting and integrate process automation, and we’re thrilled to welcome them to the MRI family,” Mr. Bowie says.
Lee Trevena, chief executive officer and founder of LeaseEagle, adds, “I had each one of our 185+ clients in mind when considering this transaction. 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.
“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,” Mr. Trevena says.
COVID-19 impacts IFRS-16/AASB-16/NZ IFRS-16 standard compliance
The International Financial Reporting Standards (IFRS), the Australian Accounting Standards Board (AASB) and the New Zealand Accounting Standards Board (NZASB) mandated full compliance from 1 January 2019 with new lease accounting standards known as IFRS-16 globally and AASB-16 and NZ-IFRS-16 in Australia and New Zealand, respectively. Since then, far more complex lease reporting data is required across entire lease and option periods, and COVID-19 rent relief amendments first made in 2020 may continue to apply into 2022 for pandemic-affected commercial tenants.
For those companies impacted, non-compliance is simply not an option. LeaseEagle ensures clients have the reporting, analysis and data management needed to effectively maintain compliance while balancing their already demanding workload managing commercial tenants with multiple sites during such historically significant and disrupted times.
LeaseEagle is the fifth acquisition by MRI Software of PropTech innovators in Australia and New Zealand in the last few years. The four other recent Asia Pacific acquisitions are Box+Dice, Palace and WhosOnLocation in 2021, and Rockend in August 2019.
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