Sun Life, the insurance and financial services group headquartered in Toronto, is to acquire Bentall Kennedy for C$560m (US$454m).
Bentall Kennedy provides specialised real estate investment management and real estate services, including property management and leasing, in Canada and the US.
At 31 March 2015, Bentall Kennedy had assets under management of C$27bn and provided real estate services across 91 million square feet of properties.
The acquisition is part of Sun Life's strategy to broaden its asset management arm by expanding and diversifying the capabilities of Sun Life Investment Management, which provides investment services to third parties and manages Sun Life's general account.
The transaction is expected to close in the third quarter of 2015.
"The acquisition of Bentall Kennedy is a perfect fit with Sun Life's four-pillar strategy," said Dean Connor, CEO of Sun Life Financial. "It expands and diversifies our asset management pillar with one of the most respected names in real estate."
The two firms will combine their real estate investment management teams and Bentall Kennedy will be a unit of Sun Life Investment Management.
Bentall Kennedy will retain its brand name and be Sun Life's exclusive real estate investment management platform. Together, the real estate and mortgage teams of Bentall Kennedy and Sun Life Investment Management will have $47bn in assets under management, serving over 550 institutional clients and investors.
"The purchase of Bentall Kennedy complements Sun Life Investment Management's expertise in asset-liability management, fixed income and alternative asset classes by extending our real estate and mortgage investment capabilities," said Steve Peacher, president, Sun Life Investment Management, and chief investment officer, Sun Life Financial.
Following completion of the transaction, Bentall Kennedy will continue to be managed by its current team, led by group CEO, Gary Whitelaw, who will report to Peacher.
Bentall Kennedy's institutional shareholders, the British Columbia Investment Management Corporation (bcIMC) and the California Public Employees' Retirement System (CalPERS), have both approved the transaction and will continue to be key clients of Bentall Kennedy under Sun Life's ownership.