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Sun Life Closes Acquisition of Majority Stake in BentallGreenOak
Thursday 11 July 2019

11 July 2019 - Canada-based financial services organisation Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) has closed its acquisition of a majority stake in Canadian commercial mortgage investment specialist BentallGreenOak, the company said.
Leveraging the history of both firms, BentallGreenOak will form the real estate pillar of our recently established institutional asset management business, SLC Management, a top 100 global asset management firm.
In 2018, Sun Life Financial announced plans to merge Bentall Kennedy, its North American real estate and property management firm which Sun Life Financial acquired in 2015, with GreenOak Real Estate, a global real estate investment firm with approximately CDN 14bn in assets under management and nine offices globally.
Sun Life Financial acquired a majority stake in the combined Bentall Kennedy and GreenOak entity to be named Bentall GreenOak and be part of Sun Life Investment Management.
Senior management of Bentall GreenOak will include executives from both Bentall Kennedy and GreenOak.
Under the deal, Sun Life Financial contributed its interest in Bentall Kennedy and pay GreenOak shareholders CDN 195m (USD 146m) in cash in exchange for a 56% interest in the combined Bentall GreenOak entity, with GreenOak shareholders holding the remaining interest. 
As part of the transaction, Sun Life has an option to acquire the remaining interest in Bentall GreenOak approximately seven years from the closing.
Sun Life Financial also acquired the right to a portion of the GreenOak shareholders' share of Bentall GreenOak net income in exchange for a fixed amount to be paid in quarterly installments. 
This will result in Sun Life Financial having the rights to approximately 90% of Bentall GreenOak earnings prior to the company exercising its option to increase its ownership level.
Sun Life is an international financial services organization providing insurance, wealth and asset management solutions to individual and corporate clients.
Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda.
As of March 31, 2019, Sun Life had total assets under management of USD 1,011 bn.
The common shareholders' equity of Sun Life Financial will be reduced by approximately CDN 730m with the transaction close, from the establishment of a liability reflecting the present value of the expected settlement price on the purchase of the remaining interest of Bentall GreenOak. The ultimate settlement price will reflect the success of the combined Bentall GreenOak entity. 
SLC Management is an institutional alternatives asset management business of Sun Life, composed of the SLC Management Fixed Income Business and BentallGreenOak Real Estate Business.
The SLC Management Fixed Income Business includes Prime Advisors, Inc., Ryan Labs Asset Management Inc., and Sun Life Capital Management LLC2 in the United States, and Sun Life Capital Management (Canada) Inc. in Canada.
BentallGreenOak includes BentallGreenOak (Canada) Ltd. Partnership, BentallGreenOak(US) Ltd. Partnership and the commercial mortgage investment groups of certain of their affiliates, all of which comprise a team of real estate professionals spanning multiple legal entities.
As of March 31, 2019, SLC Management's collective operations have assets under management of USD 212bn (USD 159bn).
Date Published: 11/07/2019
Target: BentallGreenOak/majority stake
Country: Canada
Deal Size: 146m (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: Sun Life Financial Inc