MetLife Financial investment Management Concluded $10.7 Billion in Professional Genuine Estate Debt and Equity Investments in 2020
5 min readWHIPPANY, N.J.–(Small business WIRE)–MetLife Investment decision Management (MIM), the institutional asset management small business of MetLife, Inc. (NYSE: Fulfilled), currently declared that it done $10.7 billion in new business genuine estate debt and fairness transactions in 2020, taking MIM’s world gross marketplace value of industrial serious estate belongings underneath administration (AUM) to $106.7 billion1 as of December 31, 2020. As of December 31, 2020, gross marketplace benefit of whole business home loan financial loan AUM climbed to $74. billion2 and the gross market place benefit of complete real estate fairness AUM achieved $32.7 billion3.
“Our marketplaces faced unparalleled challenges in 2020. I am happy of how our serious estate team arrived collectively and dealt with the disaster, leveraging our a long time of encounter throughout multiple market cycles,” reported Robert Merck, global head of Actual Estate and Agriculture for MetLife Expenditure Management. “The strength and stability of our platform alongside with our society of threat management permitted us to proceed supporting communities with serious estate funding and financial commitment initiatives that supply place for persons to function, shop and reside.”
MIM’s business serious estate platform includes financial debt and equity origination and asset management abilities across 13 offices in the U.S. and global markets, which include the U.K., Japan, Korea, Chile and Mexico.
In spite of the pandemic, MIM remained a resource of credit card debt money for the business genuine estate industry. MIM originated 137 industrial property finance loan loans totaling $8.5 billion for the duration of the yr, giving aid for our debtors even as industry liquidity diminished through the early months of the pandemic. This origination and institutional trader action assisted raise the gross industry benefit of total business mortgage financial loan AUM to $74. billion as of December 31, 2020.
On the equity side, MIM obtained $2.2 billion of qualities in 2020, and the gross current market worth of full real estate equity AUM attained $32.7 billion. In the past various several years, MIM has greater exposure to assets sorts this sort of as past-mile distribution facilities and suburban apartments, whilst at the exact same time underweighting asset courses this kind of as reduce quality regional malls. MIM thinks its strategic and diversified strategy has permitted its authentic estate equity portfolio to temperature the modern strain, and leaves the platform well positioned to search for new possibilities in 2021.
MIM also continued to expand its worldwide portfolio in 2020, increasing commercial authentic estate AUM in a number of important international marketplaces. In Asia, MIM generated the equivalent of above $843 million in new transactions. MIM also continued to grow its presence in the U.K., with the equivalent of $527 million of industrial authentic estate debt originations in 2020.
Commercial Property finance loan Mortgage Generation
MIM originated a amount of substantial industrial mortgage personal loan transactions in 2020, together with the adhering to:
- Blackstone I-94 Industrial Portfolio (Chicago, Ill. and Milwaukee, Wis.) – $218 million industrial portfolio very first home loan
- 17th & Broadway Residences (Oakland, Calif.) – $115 million apartment assets initial mortgage
- Aegon European Headquarters (Edinburgh, U.K.) – £87 million ($107 million) business residence senior loan
- Marshfield Organization Park (Baltimore, Md.) – $108 million industrial portfolio 1st home finance loan
- Durham ID (Durham, N.C.) – $107 million business office / everyday living science home 1st house loan
Authentic Estate Equity Investment Manufacturing
MIM’s true estate equity portfolio involves investments in place of work, apartment, retail, industrial and hotel houses. Transactions shut for the duration of 2020 integrated:
- Park District (Dallas, Texas) – Acquisition of a lately concluded apartment building
- Shakopee Industrial (Minneapolis, Minn.) – Course A industrial setting up with total square toes (sf) of 855,000
- Memphis & Nashville Core Industrial Portfolio (Tenn.) – Four constructing, class A industrial portfolio consisting of 2,919,349 sf
- Sierra Fontana (Fontana, Calif.) – Development of an industrial developing totaling 705,280 sf
- Hanover 8th Avenue (Washington, District of Columbia) – Enhancement of class A apartment developing with 377 models
About MetLife Financial investment Management
MetLife Investment Administration, the institutional asset administration small business of MetLife, Inc. (NYSE: Achieved), is a worldwide community fastened profits, non-public money and actual estate investment manager offering tailored financial investment options to institutional buyers globally. MetLife Investment Management gives community and private pension designs, insurance corporations, endowments, funds and other institutional purchasers with a selection of bespoke financial commitment and financing solutions that seek to meet a variety of extended-phrase financial investment objectives and hazard-altered returns about time. MetLife Expenditure Administration has in excess of 150 a long time of investment decision practical experience and, as of December 31, 2020, had $659.6 billion in overall belongings beneath management.4
About MetLife
MetLife, Inc. (NYSE: Met), as a result of its subsidiaries and affiliates (MetLife), is 1 of the world’s major fiscal expert services organizations, furnishing insurance policy, annuities, worker advantages and asset management to help its personal and institutional clients navigate their modifying environment. Launched in 1868, MetLife has functions in more than 40 markets globally and holds main positions in the United States, Japan, Latin America, Asia, Europe and the Center East. For a lot more data, stop by www.metlife.com.
Ahead-On the lookout Statements
The forward-on the lookout statements in this information release, this kind of as “believes,” “continue,” “remains,” “seek,” and “well positioned,” are based on assumptions and expectations that involve challenges and uncertainties, which includes the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Fee filings. MetLife’s long term success could vary, and it has no obligation to suitable or update any of these statements.
Endnotes
1 Gross current market benefit of professional real estate AUM signifies the value of all business house loan financial loans and real estate equity managed by MIM, at approximated reasonable benefit, presented on the foundation of gross current market price (inclusive of encumbering financial debt).
2 Gross marketplace price of complete industrial home finance loan loan AUM represents the price of all business mortgage loans managed by MIM, at estimated good price, which includes commercial home finance loan loans incorporated in sure serious estate joint ventures owned by MetLife’s standard account, offered on the basis of gross industry price (inclusive of encumbering credit card debt).
3 Gross current market price of whole genuine estate equity AUM signifies the value of all actual estate fairness managed by MIM, at estimated reasonable worth, excluding business home finance loan financial loans bundled inside of certain true estate joint ventures owned by MetLife’s general account, presented on the basis of gross market worth (inclusive of encumbering credit card debt).
4Total AUM is comprised of all MetLife typical account and separate account property and unaffiliated/third celebration assets, at believed honest value, managed by MIM.
