Sun Life Financial Inc. completed its acquisition of Bell Partners, a leading U.S. multifamily real estate investment manager and vertically integrated property management business, for US$350 million. The transaction, which closed on July 2, 2026, expands Sun Life's asset management capabilities in one of the largest and most resilient sectors of the U.S. real estate market. Approximately 80% of the purchase price was paid in Sun Life common shares.

Bell Partners will continue to operate as a distinct, vertically integrated business under BGO and oversee the broader company's U.S. multifamily assets. The firm will retain its current leadership, property-level branding, office locations, investment vehicles, and client focus. This acquisition aligns with Sun Life's strategy to grow its asset management footprint through SLC Management, its institutional asset management business.

Transaction Details

The acquisition involved a 100% interest purchase in Bell Partners. The deal structure and payment terms highlight Sun Life's commitment to leveraging its capital to expand its real estate portfolio. The following table summarizes the key financial metrics of the transaction:

Strategic Impact

By integrating Bell Partners, Sun Life strengthens its position in the U.S. multifamily real estate market. Bell Partners manages approximately 65,000 apartment homes across 12 regions in the U.S., including major markets such as Seattle, San Francisco, Denver, and Atlanta. The combined entity benefits from Bell Partners' expertise in property management, acquisitions, and construction, enhancing Sun Life's ability to deliver value to institutional clients.

About the Entities

Sun Life is a leading international financial services organization providing asset management, wealth, insurance, and health solutions. As of March 31, 2026, Sun Life had total assets under management of $1.58 trillion. SLC Management, the institutional asset management business of Sun Life, had assets under management of US$308 billion as of the same date. BGO, a global real estate investment management advisor, is part of SLC Management and now includes Bell Partners.

Sun Life Financial Inc. has set the interest rate for its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 (Subordinated Indebtedness) at 5.614% per annum. The new rate applies for the five-year period commencing June 30, 2026, and ending June 30, 2031. This reset was determined in accordance with the terms of the trust indenture dated June 30, 2021.

The interest rate calculation is based on the sum of the Government of Canada Yield, determined as of June 29, 2026, plus a spread of 2.604%. Interest on the notes will be payable semi-annually in arrears on June 30 and December 31 of each year, with the first payment at the new rate scheduled for December 31, 2026.

The notes are scheduled to mature on June 30, 2081. In connection with the issuance, the company issued 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14, held by Computershare Trust Company of Canada as trustee of Sun Life LRCN Trust. Recourse for noteholders is limited to their proportionate share of the trust's assets, primarily consisting of the Series 14 Shares, except in limited circumstances.

Sun Life may redeem the notes, with prior approval from the Superintendent of Financial Institutions (Canada), during the period from May 31, 2031, to June 30, 2031, and every five years thereafter. Redemption requires not less than 15 nor more than 60 days' prior notice and is contingent upon the company redeeming an equivalent aggregate face amount of Class A Shares Series 14.

The notes and Series 14 Shares were issued under a prospectus supplement dated June 24, 2021. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE), and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Key Details of the Notes