In December 2018, Sun Life Financial signed an agreement to merge its North American subsidiary Bentall Kennedy with GreenOak Real Estate and acquire a majority stake in the newly formed entity, BentallGreenOak.
BentallGreenOak, which will be part of be part of Sun Life Investment Management, is expected to provide its clients with a wide range of real estate investment strategies such as core equity and senior and tactical real estate debt strategies.
Sun Life agreed to pay CAD195m (£118.5m) for the 56% stake in the combined company. The remaining 44% stake in the company will be held by GreenOak shareholders.
As part of the transaction, Sun Life has an option to acquire the remaining 44% stake in BentallGreenOak about seven years from the closing date.
Furthermore, Sun Life will also have the right to a portion of GreenOak shareholders’ share of BentallGreenOak net income in exchange for fixed amount to be paid in quarterly instalments.
This will result in the Canadian financial company having the rights to about 90% of BentallGreenOak earnings before the company can exercise its option to increase its ownership level.
Sun Life president and CEO Dean Connor said: “We’re excited about the completion of the BentallGreenOak acquisition and increasing our global real estate investment footprint.
“This acquisition adds organizational depth and a full spectrum of solutions including equity and debt real estate strategies, while adding to the capabilities of our alternatives manager, SLC Management.”
SLC Management president Steve Peacher said: “Our focus remains on delivering exceptional service and performance for investors in the alternative asset management space, leveraging the depth and breadth of experience Sun Life has utilized to manage its own assets for over 150 years.
“We’re confident that SLC Management is uniquely positioned to offer like-minded investors, such as pension funds, insurance companies and endowments, solutions to meet their needs.”
