Binswanger and SDS Announce Merger, Expecting Revenues of up to $80 Million in the Coming Years

The companies released a market announcement informing about the merger.

The company executives have concluded that operationally, they are mutually complementary

By: SiiLA News

09/26/2023

The real estate consultancy firm known as Binswanger Brazil has announced that they are merging with SDS Properties, a company specializing in leasing industrial logistics properties, this Tuesday, 26th. In a statement, Binswanger SDS, as it's now called, characterizes this move as an expansion into the transaction sector, driven primarily by the growing demand for logistics warehouses from tenants.

In an interview with the REsource team, Simone Santos, co-founder of SDS, shared the story behind this significant merger. She explained, "This journey began several months ago, precisely when I found myself at a crossroads, needing to make a pivotal decision. It's fascinating how this all unfolded from a casual conversation between myself, Márcio Kawashima, and Nilton Molina, both from Binswanger. We discovered an unexpectedly strong connection, and together, we recognized the enormous potential of merging our companies. It truly seems like the perfect fit for both sides."

For Márcio Kawashima, Managing Partner at Binswanger, this merger couldn't have come at a better time for both companies. "Our aim isn't just to combine 1 and 1 to make 2, but rather to create a synergy resulting in 5. With this merger, we're entering the market with a comprehensive suite of real estate services."

Enhancing Synergy Through the Merger

Sócio-diretor from Bisnwanger, Márcio Kawashima

Delving further into the merger, Márcio Kawashima highlights the significant complementarity between the two companies. "In recent years, Binswanger has excelled in developing various consultancy services, focusing on areas such as property valuation, project management, document regularization, and market intelligence. However, our presence in the transaction sector was primarily centered on the sale of industrial properties. With Simone and SDS joining our ranks, we're bringing in a wealth of specialized knowledge, particularly in the logistics warehouse market. Their expertise perfectly complements our activities. With the integration of SDS into our team, we're committed to building an even more comprehensive company, offering services across all segments and providing a complete suite of services to our clients," adds the executive, who has been leading Binswanger since 2018.

New Operation

SDS Properties has been active in the real estate market, specializing in logistics, industrial, and retail and wholesale networks since 2019. The merger with Binswanger Brazil, which started its operations in 1997, will unite the 15 employees from the real estate agency with the 65 employees from the consultancy.

This merger is expected to substantially boost the company's revenue, ranging between $60 and $80 million. Currently, Binswanger Brazil generates revenue between $30 and $35 million, while SDS Properties generates between $5 and $7 million.

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