Gross market value of commercial real estate
assets under management climbs to $106.7 billion, a new high for
MIM
MetLife Investment Management (MIM), the institutional asset
management business of MetLife, Inc. (NYSE: MET), today announced
that it completed $10.7 billion in new commercial real estate debt
and equity transactions in 2020, taking MIM’s global gross market
value of commercial real estate assets under management (AUM) to
$106.7 billion1 as of December 31, 2020. As of December 31, 2020,
gross market value of total commercial mortgage loan AUM climbed to
$74.0 billion2 and the gross market value of total real estate
equity AUM reached $32.7 billion3.
“Our markets faced unprecedented challenges in 2020. I am proud
of how our real estate team came together and addressed the crisis,
leveraging our decades of experience across multiple market
cycles,” said Robert Merck, global head of Real Estate and
Agriculture for MetLife Investment Management. “The strength and
stability of our platform along with our culture of risk management
allowed us to continue supporting communities with real estate
financing and investment initiatives that provide space for people
to work, shop and live.”
MIM’s commercial real estate platform comprises debt and equity
origination and asset management capabilities across 13 offices in
the U.S. and international markets, including the U.K., Japan,
Korea, Chile and Mexico.
Despite the pandemic, MIM remained a source of debt capital for
the commercial real estate market. MIM originated 137 commercial
mortgage loans totaling $8.5 billion during the year, providing
support for our borrowers even as market liquidity diminished
during the early months of the pandemic. This origination and
institutional investor activity helped increase the gross market
value of total commercial mortgage loan AUM to $74.0 billion as of
December 31, 2020.
On the equity side, MIM acquired $2.2 billion of properties in
2020, and the gross market value of total real estate equity AUM
reached $32.7 billion. In the past several years, MIM has increased
exposure to property types such as last-mile distribution centers
and suburban apartments, while at the same time underweighting
asset classes such as lower quality regional malls. MIM believes
its strategic and diversified approach has allowed its real estate
equity portfolio to weather the recent stress, and leaves the
platform well positioned to seek new opportunities in 2021.
MIM also continued to expand its international portfolio in
2020, increasing commercial real estate AUM in several key global
markets. In Asia, MIM produced the equivalent of over $843 million
in new transactions. MIM also continued to grow its presence in the
U.K., with the equivalent of $527 million of commercial real estate
debt originations in 2020.
Commercial Mortgage Loan Production
MIM originated a number of significant commercial mortgage loan
transactions in 2020, including the following:
- Blackstone I-94 Industrial Portfolio (Chicago, Ill. and
Milwaukee, Wis.) - $218 million industrial portfolio first
mortgage
- 17th & Broadway Apartments (Oakland, Calif.) - $115 million
apartment property first mortgage
- Aegon European Headquarters (Edinburgh, U.K.) - £87 million
($107 million) office property senior loan
- Marshfield Business Park (Baltimore, Md.) - $108 million
industrial portfolio first mortgage
- Durham ID (Durham, N.C.) - $107 million office / life science
property first mortgage
Real Estate Equity Investment Production
MIM’s real estate equity portfolio includes investments in
office, apartment, retail, industrial and hotel properties.
Transactions closed during 2020 included:
- Park District (Dallas, Texas) – Acquisition of a recently
completed apartment building
- Shakopee Industrial (Minneapolis, Minn.) – Class A industrial
building with total square feet (sf) of 855,000
- Memphis & Nashville Core Industrial Portfolio (Tenn.) –
Four building, class A industrial portfolio consisting of 2,919,349
sf
- Sierra Fontana (Fontana, Calif.) – Development of an industrial
building totaling 705,280 sf
- Hanover 8th Street (Washington, District of Columbia) –
Development of class A apartment building with 377 units
About MetLife Investment
Management
MetLife Investment Management, the institutional asset
management business of MetLife, Inc. (NYSE: MET), is a global
public fixed income, private capital and real estate investment
manager providing tailored investment solutions to institutional
investors worldwide. MetLife Investment Management provides public
and private pension plans, insurance companies, endowments, funds
and other institutional clients with a range of bespoke investment
and financing solutions that seek to meet a range of long-term
investment objectives and risk-adjusted returns over time. MetLife
Investment Management has over 150 years of investment experience
and, as of December 31, 2020, had $659.6 billion in total assets
under management.4
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates (MetLife), is one of the world’s leading financial
services companies, providing insurance, annuities, employee
benefits and asset management to help its individual and
institutional customers navigate their changing world. Founded in
1868, MetLife has operations in more than 40 markets globally and
holds leading positions in the United States, Japan, Latin America,
Asia, Europe and the Middle East. For more information, visit
www.metlife.com.
Forward-Looking Statements
The forward-looking statements in this news release, such as
“believes,” “continue,” “remains,” “seek,” and “well positioned,”
are based on assumptions and expectations that involve risks and
uncertainties, including the “Risk Factors” MetLife, Inc. describes
in its U.S. Securities and Exchange Commission filings. MetLife’s
future results could differ, and it has no obligation to correct or
update any of these statements.
Endnotes 1 Gross market value of
commercial real estate AUM represents the value of all commercial
mortgage loans and real estate equity managed by MIM, at estimated
fair value, presented on the basis of gross market value (inclusive
of encumbering debt).
2 Gross market value of total commercial mortgage loan AUM
represents the value of all commercial mortgage loans managed by
MIM, at estimated fair value, including commercial mortgage loans
included within certain real estate joint ventures owned by
MetLife’s general account, presented on the basis of gross market
value (inclusive of encumbering debt).
3 Gross market value of total real estate equity AUM represents
the value of all real estate equity managed by MIM, at estimated
fair value, excluding commercial mortgage loans included within
certain real estate joint ventures owned by MetLife’s general
account, presented on the basis of gross market value (inclusive of
encumbering debt).
4 Total AUM is comprised of all MetLife general account and
separate account assets and unaffiliated/third party assets, at
estimated fair value, managed by MIM.
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For Media: James Murphy +1 917-225-6303
james.p.murphy@metlife.com
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