MassMutual is buying European real estate investment management firm Protego Real Estate Investors and will merge it with MassMutual's two existing real estate groups, Cornerstone Real Estate Advisers and Babson Capital Management's real estate finance group, confirmed spokesman David H. Coburn.
Terms for the Protego acquisition were not disclosed.
The combined firm, which will retain the Cornerstone name, will have a total of $31.9 billion in assets managed and serviced, and will become the real estate subsidiary of Babson Capital Management, which is MassMutual's money management subsidiary.
The merger will be effective in the first quarter 2010.
Protego brings $2.5 billion in assets and will bolster Cornerstone's presence in the European market, Mr. Coburn said.
Babson Capital's real estate finance group has $21 billion in assets under management, while Cornerstone has $8.1 billion, both as of Sept. 30, Mr. Coburn said.
“These moves will immediately rank us among the world's top real estate investment advisers. They will allow us to better serve our clients by offering investments across the real estate debt and equity spectrum and broadening our global reach,” David J. Reilly, CEO of Cornerstone, wrote in an e-mailed response to questions.