The sale of General Electric’s investment management business will give State Street $3.6bn (€3.16bn) in real estate assets under management.

State Street is buying GE Asset Management (GEAM) for $485m in cash deal that will boost State Street Global Advisors’ (SSGA) assets under management by $100bn.

SSGA already manages $136bn in alternative investments, some of which comprise investments in real estate investment trusts (REITs).

But through the acquisition, SSGA will gain access to direct and co-investment real estate expertise.

GEAM manages real estate investments on behalf of the GE Pension Plan and other third-party investors, including public and corporate pension funds, foundations, endowments, sovereign wealth funds and insurance companies.

According to GE’s 2015 annual report, the GE Pension Plan and GE Supplementary Pension Plan last year had $3.19bn invested in real estate. Other GE-related pension plans had $1.36bn invested in the asset class.

An independent fiduciary, Evercore Trust Company, has reviewed the transaction and approved SSGA’s engagement to manage assets related to the GE pension plan that are currently managed by GEAM.

Ron O’Hanley, president and CEO of SSGA, said: “GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams.”

Last year, GE sold a $23bn real estate portfolio as part of a wider effort to spin off its financial services subsidiary GE Capital.