BentallGreenOak says it has an agreement to acquire Metropolitan Real Estate Equity LLC, a New York-based global primary, secondary and co-investment real estate platform with more than US$2.4 billion in assets under management.
It is acquiring Metropolitan from The Carlyle Group Inc., a global investment firm with over US$246 billion in assets under management. Carlyle Group has owned Metropolitan since acquiring the platform in 2013.
“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,” said Sonny Kalsi, chief executive officer of BentallGreenOak, in a release announcing the deal.
Financial terms were not released. The transaction remains subject to customary closing conditions, and is expected to complete by the end of Q2 2021.
“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,” Kalsi continued.
“We are confident that the cultural alignment and history of strong relationships we share with Metropolitan’s senior management team makes this deal a seamless fit for both firms.”
Metropolitan founded in 2002
The announcement says both firms have highly complementary real estate investment strategies and a commitment to continuity of leadership.
“We are excited to join BentallGreenOak’s broad global real estate platform,” said Sarah Schwarzschild and John So, co-heads of Metropolitan Real Estate, in the release. “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.
“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.”
Metropolitan Real Estate was founded in 2002 and manages U.S. and global closed-end real estate funds and custom account programs focused on value-add and opportunistic multi-manager investments. Metropolitan makes primary commitments to funds, acquires fund interests on the secondary market and participates in direct co-investments.
As of Dec. 31, Metropolitan had invested with over 120 managers across 274 funds with exposure to over 5,000 global assets.
Since its inception, Metropolitan has sponsored and managed 38 closed-end private equity real estate multi-manager funds and several custom account programs.
In addition to its New York headquarters, Metropolitan has offices in London and Hong Kong. It employs a 30-plus person team across investments, legal and compliance, fund management, finance and accounting, and investor relations.
BentallGreenOak is a global real estate investment management advisor and provider of real estate services. It serves more than 750 institutional clients with approximately US$53 billion of assets under management (as of Dec. 31) and expertise in the asset management of office, industrial, multiresidential, retail and hotel property around the globe.
BentallGreenOak has offices in 24 cities across 12 countries and extensive networks in the regions where it invests and manages real estate assets. The assets under management include real estate equity and mortgage investments managed by the BentallGreenOak group of companies and their affiliates.
BentallGreenOak is a part of SLC Management, the alternatives asset management business of Sun Life.