Less than two years after being created through a merger that created a $47 billion real estate fund manager, BentallGreenOak is set to grow still further through a deal with The Carlyle Group.
Formed through the fusion of Bentall Kennedy and Sonny Kalsi’s GreenOak Real Estate in 2019, the Toronto and New York-based firm is acquiring Metropolitan Real Estate Equity Management from Carlyle for an undisclosed sum, according to a statement on Friday.
“BentallGreenOak’s acquisition of Metropolitan was motivated by our relentless efforts to put our clients and investors first by providing them with access to an enhanced array of global investment strategies and opportunities,” Kalsi said. “Our shared, positive outlook on the growth potential for secondary and co-investment opportunities in the commercial real estate market further cements our commitment to integrating this business into our platform and growing it into a global leader for the long term.”
The deal will add Metropolitan Real Estate’s $2.4 billion in assets under management to BentallGreenOak’s business, with the target company active across primary, secondary and co-investment transactions.
BentallGreenoak said that the acquisition, which is expected to close within the first half of 2021 would fuse companies with distinct and highly complementary strategies.
“Our shared focus on investment performance, entrepreneurial mindset, and the complementary nature of our businesses makes BentallGreenOak both a strong strategic and cultural fit for the Metropolitan team,” said Sarah Schwarzschild and John So, co-heads of Metropolitan Real Estate. “We will look to leverage BentallGreenOak’s deep real estate resources to drive future value for our investors and accelerate growth opportunities for Metropolitan’s secondaries, co-investment and separately managed account businesses.”
Founded in 2002 and acquired by Carlyle in 2013, Metropolitan makes primary commitments to funds, acquires fund interests on the secondary market and participates in direct co-investments with managers.
As of December 31, 2020, Metropolitan had made 274 investments globally involving 5,000 assets with over 120 fund managers.
BentallGreenOak has been active in pursuing deals globally this year, including buying a UK logistics portfolio from Morgan Stanley at the beginning of February.
Merging Asia Footprints
In Asia, BentallGreenOak is based in Tokyo, with the acquisition allowing the company to add Metropolitan’s Hong Kong office to its set of locations in the region.
In late 2020 BentallGreenOak had added the Avex Building in Tokyo to its portfolio with a JPY 72 billion (then $693 million) acquisition of that office property.
Metropolitan was also active in Asia Pacific late last year as the firm teamed up with US developer Hines to acquire a 33,800 square metre (363,820 square foot) cold storage facility and adjacent development site in southern China’s Guangdong province.