Great-West Lifeco Inc. announced Oct. 17 that its subsidiary, GWL Realty Advisors U.S. Inc. (GWLRA), has entered into an agreement to acquire Guggenheim Real Estate LLC (GRE) – the real estate private equity platform of Guggenheim Investments.
"This strategic acquisition of GRE complements our global real estate growth strategy and further enhances our platform within the U.S. marketplace," said Paul Mahon, President and Chief Executive Officer, Great-West Lifeco.
Guggenheim Real Estate LLC (GRE) was founded in 2001 and has offices in Boston and Charlotte. GRE manages gross assets of US$1.8B through fund vehicles investing in the multi-family, office, industrial, retail, self-storage and seniors housing sectors as well as public REIT investments.
Will be combined with EverWest
Great-West Lifeco says the company will be combined with EverWest Real Estate Investors, a real estate investment management and operating company acquired by GWLRA U.S. in February 2018. The combined platform will comprise US$3.6B in gross assets and will be led by EverWest President, Rick Stone.
"The acquisition of GRE is consistent with our global growth strategy and will support our clients' real estate diversification and portfolio return objectives," said Paul Finkbeiner, President, GWLRA. "GRE's offices in the northeast and southeast will complement EverWest's existing national presence."
GRE Managing Principal, Joseph Mahoney, and members of his leadership team will join EverWest and will continue to oversee the management of the acquired real estate funds.
Upon closing, GWLRA will have C$17.3B in gross assets and C$10.6B in gross value in core open-end real estate funds in Canada and the United States, says the company.
The transaction is expected to close in the fourth quarter of 2018 and is subject to customary regulatory approvals and certain closing conditions. Terms of the transaction were not disclosed.