GWL Realty Advisors Inc. says it has a deal to purchase Guggenheim Real Estate LLC (GRE) through its U.S. subsidiary, GWL Realty Advisors U.S. Inc. The transaction will be the second major purchase this year for GWLRA US.
Financial terms of the acquisition were not disclosed, but GRE manages gross assets of US$1.8 billion through investments in the multi-family, office, industrial, retail, self-storage and seniors housing sectors as well as public REIT investments. GRE was founded in 2001 and has offices in Boston and Charlotte.
It is the real estate private equity of internationally known Guggenheim Investments.
GRE will combine with EverWest Real Estate Investors, a Denver-based real estate investment management and operating business acquired by GWLRA U.S. in February. The combined platform will comprise US$3.6 billion in gross assets and will be led by EverWest president Rick Stone.
“The acquisition of GRE is consistent with our global growth strategy and will support our clients’ real estate diversification and portfolio return objectives,” said Paul Finkbeiner, president of GWLRA, in a release Wednesday afternoon. “GRE’s offices in the northeast and southeast will complement EverWest’s existing national presence.”
GRE managing principal, Joseph Mahoney, and members of his leadership team will join EverWest and continue to oversee the management of the acquired real estate funds.
“We welcome the acquisition by GWLRA,” said Mahoney in the release. “The talent and commitment of our combined team positions us well for continued growth as part of GWLRA’s fund offerings.”
“The transaction is a win-win for all parties,” said Jerry Miller, president of Guggenheim Investments. “The divestiture of our standalone GRE platform reflects our strategy to maintain focus on the active investment capabilities that our global insurer, institutional and individual clients demand across fixed-income, corporate credit and alternatives.”
Upon closing, GWLRA will have $17.3 billion Cdn in gross assets and $10.6 billion Cdn in gross value in core open-end real estate funds in Canada and the United States.
The transaction is expected to close in the fourth quarter of 2018 and is subject to regulatory approvals and closing conditions.
The CenterCap Group, LLC acted as financial advisor to GWL Realty Advisors U.S. in connection with the transaction.
About GWL Realty Advisors Inc.
GWL Realty Advisors, the parent company of GWL Realty Advisors U.S. Inc., is a real estate investment advisor providing comprehensive asset management, property management, development and specialized real estate advisory services to pension funds and institutional clients.
In 2018, GWLRA received a Green Star ranking for the fourth consecutive year from the Global Real Estate Sustainability Benchmark, the world’s leading benchmark for evaluating and ranking the sustainability practices of real estate companies.
GWL Realty Advisors is a subsidiary of The Great-West Life Assurance Company.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than US$208 billion in total assets across fixed income, equity, and alternative strategies.
Guggenheim focuses on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors.