Real estate investment company BentallGreenOak has signed an agreement to acquire Metropolitan Real Estate Equity from global investment firm The Carlyle Group. The deal adds Metropolitan’s integrated primary, secondary and co-investment real estate platform—with more than $2.4 billion (as of Dec. 31, 2020) in assets under management—to BentallGreenOak’s business, and aims to deliver further diversified investment strategies and enhanced global market presence for a global real estate investment management advisor and a provider of real estate services.
In June, BentallGreenOak acquired the Hutton Hotel in Nashville as part of a new three-way venture with Flank Management and Geolo Capital. The hotel changed hands in an all-cash purchase for an undisclosed price. The deal is the first of what BGO, Flank and Geolo hope will lead to more strategic partnerships to come.
"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, CEO of BentallGreenOak. “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. 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.”
“We are excited to join BentallGreenOak’s broad global real estate platform,” said Sarah Schwarzschild and John So, co-heads of Metropolitan Real Estate. “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.”Terms of the agreement have not been publicly disclosed. The transaction is subject to customary closing conditions. Closing of the deal is expected to occur in the first half of 2021.