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July 18 (Reuters) - Brokerage BGC Partners Inc said on Tuesday it would buy mortgage provider Berkeley Point Financial LLC from financial services firm Cantor Fitzgerald for $875 million.

BGC also said it would partner with Cantor to set up a commercial real estate business and would invest $100 million in cash for about 27 percent of the business.

Cantor will contribute about $267 million of cash and non-cash assets for about 73 percent of the business and will also bear initial losses from the business, if any, up to about $37 million per year.

New York-based BGC Partners said it expected the acquisition to increase its revenues and earnings and planned to fund it through debt issuance and cash on hand.

Berkeley Point, acquired by an affiliate of Cantor Fitzgerald in April 2014, had a book value of $509 million as of March 31, 2017.

Sandler O'Neill & Partners served as financial adviser to BGC on the transaction. (Reporting by Parikshit Mishra in Bengaluru; Editing by Amrutha Gayathri)