BentallGreenOak has agreed to buy the real estate multi-manager arm of The Carlyle Group for an undisclosed amount.
The acquisition of Metropolitan Real Estate Equity add $2.4bn (€2bn) to BentallGreenOak’s $53bn in assets under management and diversify its business into funds of funds, secondaries and co-investments.
Founded in 2002, Metropolitan was acquired by The Carlyle Group in 2013. BentallGreenOak was created in 2018 through the merger of real estate fund managers Bentall Kennedy and GreenOak Real Estate.
Sonny Kalsi, the CEO of BentallGreenOak, said: “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.
“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.”
A report published this week by capital advisory firm Hodes Weill predicts further consolidation in the real estate investment management industry this year, driven in part by some of the largest firms acquiring smaller specialists.
Although COVID-19 restrictions have weighed on M&A activity, M7 Real Estate, Exeter Property Group and Tritax Management have been acquired in recent months.
In the report published this week, Hodes Weill has predicted that this trend will continue “as large-cap managers target specialists to access new products, sectors and markets”.
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