Sun Life Financial is acquiring real estate investment manager Bentall Kennedy Group for $560 million.
Bentall Kennedy, with some $27 billion of assets under management, operates in both Canada and the United States where it provides specialized real estate investment management and services, including property management and leasing.
Read: Sun Life buying U.S. asset management firm
Sun Life says the transaction is expected to close in the third quarter and is expected to immediately add to earnings.
Bentall Kennedy will become a unit of Sun Life Investment Management, with the two firms combining their real estate investment management teams.
Read: Bentall Kennedy buys malls from CPPIB
However, Bentall Kennedy will retain its brand name and be Sun Life’s exclusive real estate investment management platform. Together they will $47 billion in assets under management, serving more than 550 institutional clients and investors.
Sun Life says the deal is part of its strategy to broaden its asset management by expanding and diversifying the capabilities of Sun Life Investment Management, which provides investment services to third parties and manages Sun Life’s general account.
Bentall Kennedy’s institutional shareholders, the British Columbia Investment Management Corp. and the California Public Employees’ Retirement System, have both approved the transaction and will continue to be key clients of Bentall Kennedy under Sun Life’s ownership, the companies said.