MetLife Investment Management Completed $10.7 Billion in Commercial Real Estate Debt and Equity Investments in 2020
WHIPPANY, NJ – (BUSINESS WIRE) – MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), announced today that it has completed $ 10.7 billion in new commercial real estate debt and equity transactions in 2020, To Enter MIM’s Global Gross Market The value of commercial real estate assets under management (AUM) as of December 31, 2020 was $ 106.7 billion1. As of December 31, 2020, the gross market value of the total commercial mortgage loan AUM increased to $ 74.0 billion2 and the gross market value of the total real estate AUM for equity reached $ 32.7 billion3.
“Our markets faced unprecedented challenges in 2020. I’m proud of the way our real estate team came together and tackled the crisis and leveraged our decades of experience across multiple market cycles, ”said Robert Merck, global director of real estate and agriculture at MetLife Investment Management. “The strength and stability of our platform, as well as our risk management culture, have enabled us to continue to support communities with real estate finance and investment initiatives that give people space to work, shop and live.”
MIM’s commercial real estate platform includes debt and equity allocation and asset management functions in 13 offices in the US and international markets including the UK, Japan, Korea, Chile and Mexico.
Despite the pandemic, MIM remained a source of leverage for the commercial real estate market. MIM raised 137 commercial mortgage loans totaling $ 8.5 billion over the year to support our borrowers even as market liquidity declined in the first few months of the pandemic. This emergence and institutional investor activity helped increase the gross market value of the entire AUM commercial mortgage loan to $ 74.0 billion as of December 31, 2020.
On the equity side, MIM acquired real estate worth $ 2.2 billion in 2020, and the gross market value of total real estate capital, AUM, reached $ 32.7 billion. In recent years, MIM has increased exposure to property types such as last mile distribution centers and suburban housing while underweighting lower quality asset classes such as regional malls. MIM believes that its strategic and diversified approach has allowed its real estate equity portfolio to weather the recent stresses and leaves the platform well positioned to look for new opportunities in 2021.
MIM continued to expand its international portfolio in 2020 and increased AUM for commercial real estate in several key global markets. In Asia, MIM produced the equivalent of over $ 843 million in new transactions. MIM continued to expand its presence in the UK, with commercial real estate debt of $ 527 million in 2020.
Commercial mortgage loan production
MIM completed a number of significant commercial mortgage loan deals in 2020, including the following:
Blackstone I-94 Industrial Portfolio (Chicago, Illinois and Milwaukee, Wisconsin) – Initial $ 218 million mortgage on the Industrial Portfolio
17th & Broadway Apartments, Oakland, California – First $ 115 million mortgage
Aegon European Headquarters (Edinburgh, UK) senior office loan of £ 87 million (US $ 107 million)
Marshfield Business Park, Baltimore, Md. – First mortgage on an industrial portfolio of $ 108 million
Durham ID (Durham, NC) – First $ 107 million office / life science mortgage loan
Production of real estate investments
MIM’s real estate stock portfolio includes investments in office, apartment, retail, industrial and hotel properties. Transactions completed in 2020 included:
Park District (Dallas, Texas) – Purchase of recently completed residential home
Shakopee Industrial (Minneapolis, Minn.) – Class A industrial buildings with a total area of 855,000 square feet (sf)
Industrial core portfolio of Memphis & Nashville (Tenn.) – Industrial portfolio with four buildings, class A, consisting of 2,919,349 sf
Sierra Fontana (Fontana, California) – Development of an industrial building with a total area of 705,280 sf
Hanover 8th Street (Washington, District of Columbia) – 377-unit Class A residential development
About MetLife Investment Management
MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), is a global fixed income, private capital and real estate investment manager providing tailored investment solutions to institutional investors worldwide. MetLife Investment Management offers public and private pension plans, insurance companies, foundations, funds and other institutional clients a range of bespoke investment and financing solutions designed to meet a range of long-term investment goals and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and had total assets of $ 659.6 billion as of December 31, 2020
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is a leading global financial services company providing insurance, annuity, employee benefits, and asset management to help its individual and institutional clients find their way into theirs Finding your way around the changing world. MetLife was founded in 1868 and operates in more than 40 markets worldwide. The company is a leader in the United States, Japan, Latin America, Asia, Europe and the Middle East. More information is available at www.metlife.com.
Forward-looking statements in this press release, such as “believes,” “continues,” “remains,” “seeks” and “well positioned” are based on assumptions and expectations that involve risks and uncertainties, including the “risk factors” MetLife, Inc. on its filing with the US Securities and Exchange Commission. MetLife’s future results could differ and there is no obligation to correct or update these statements.
1 Gross Market Value of Commercial Real Estate AUM is the value of all commercial mortgage loans and real estate capital managed by MIM at the estimated fair value presented based on the gross market value (including onerous debt).
2 Gross Market Value of Total Commercial Mortgage Loan AUM is equal to the value of all Commercial Mortgage Loans managed by MIM at its estimated fair value, including Commercial Mortgage Loans contained in certain real estate joint ventures of MetLife’s general account and presented on the basis of the gross market value ( including onerous debt).
3 Gross market value of total real estate capital AUM is the value of all real estate capital managed by MIM at its estimated fair value, excluding commercial mortgage loans included in certain real estate joint ventures of the MetLife general account and presented on the basis of the gross market value (including onerous debt).
4Total AUM comprises all general account and separate account assets of MetLife managed by MIM as well as assets of unaffiliated companies / third parties at the estimated fair value.