Sun Life Financial Inc. (Sun Life) announced plans to acquire Bentall Kennedy Group, a real estate investment advisor and provider of related services operating in the United States and Canada.
Sun Life paid $560 million for the firm, with the hope that it will diversify its asset management and investment arm. As of March 2015, Bentall Kennedy was responsible for managing the assets totaling $27 billion and overseeing the services of 91 million square feet of property.
The transaction is intended to reinforce Sun Life’s asset management pillar, one of four that it considers a business priority.
“The purchase of Bentall Kennedy complements Sun Life Investment Management’s expertise in asset-liability management, fixed income and alternative asset classes by extending our real estate and mortgage investment capabilities,” said Steve Peacher, president, Sun Life Investment Management and CIO, Sun Life Financial. “The two companies also share a common focus on customers, quality investments, strong governance and a commitment to sustainability.”
Bentall Kennedy’s leadership team will remain in place, with Group CEO Gary Whitelaw reporting to Peacher. Its institutional shareholders, the British Columbia Investment Management Corporation (bcIMC) and California Public Employees’ Retirement System (CalPERS) have publicly approved of the acquisition.
“bcIMC strongly supports the transaction, which we believe is beneficial to all stakeholders and ensures that Bentall Kennedy remains well positioned to continue to deliver value to its clients,” said Dean Atkins, acting senior vice president, Real Estate, bcIMC. “Bentall Kennedy has been a valued and trusted adviser of bcIMC for more than 24 years. We look forward to continuing our close relationship with the firm under Sun Life’s ownership.”
