Sun Life merging Bentall Kennedy real estate business with GreenOak Real Estate

TORONTO — Sun Life Financial Inc. says it has signed a deal to merge its Bentall Kennedy real estate and property management firm with GreenOak Real Estate, a global real estate investment firm.

The new company will be called Bentall GreenOak and be part of Sun Life Investment Management.

The agreement will see Sun Life Financial contribute its interest in Bentall Kennedy and pay GreenOak shareholders $195 million in cash in exchange for a 56 per cent stake in the new firm, while GreenOak shareholders will hold the remaining interest.

Sun Life will also acquire 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 instalments.

The insurer will also have an option to acquire the remaining interest in Bentall GreenOak approximately seven years from the closing.

Senior management of the new firm will include executives from both Bentall Kennedy and GreenOak.

Companies in this story: (TSX:SLF)

The Canadian Press