Sun Life Financial Services announced on Mar. 31 that it has acquired the remaining stake in Miami Beach-based BGO for $1.2 billion, making it the sole owner of the real estate investment firm.
The acquisition marks Sun Life’s first step toward merging BGO with Bell Partners, a real estate investment company based in Greensboro, North Carolina, which manages $10 billion in assets and oversees more than 70,000 apartments. Sun Life is purchasing a full ownership stake in Bell for $350 million as part of its strategy to address the nationwide housing crisis and capitalize on growth in the multifamily sector.
With these moves, Sun Life’s total spending on the merger will reach at least $1.6 billion. The Toronto-based financial services company had previously owned a majority 56 percent stake in BGO since its formation through a merger between Bentall Kennedy and GreenOak Real Estate in 2019. The recent transaction covers the remaining 44 percent stake.
BGO operates globally with $90.4 billion in assets under management, employing about 1,400 people across offices in the Americas, Europe, and Asia. The firm is led by co-CEOs Sonny Kalsi and John Carrafiell. In recent years, BGO has made significant investments including a $60 million purchase of a cold storage facility in Medley and transferring ownership of an office tower at 757 Third Avenue in New York City through deed-in-lieu of foreclosure.
Bell Partners was founded by Steve Bell and is currently chaired by his son Jon Bell. According to Sun Life’s announcement, the acquisition of Bell is expected to close during the second half of this year.
In addition to these acquisitions, Sun Life reported it will buy out the remaining 49 percent interest in Crescent Capital Group for $608 million. Crescent Capital Group is an alternative investment manager based in Los Angeles led by Mark Attanasio and Jean-Marc Chapus.
