Gross market value of commercial mortgage loan AUM climbs to $69.4 billion while gross market value of real estate equity AUM reaches $31.1 billion, both MetLife Investment Management platform records.
WHIPPANY, N.J., April 16, 2020
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced that it completed $19.6 billion in new commercial real estate debt and equity transactions in 2019, taking MIM’s global gross market value of commercial real estate assets under management (AUM) to $100.5 billion as of December 31, 2019, a new MIM platform record. As of December 31, 2019, gross market value of total commercial mortgage loan AUM climbed to $69.4 billion and the gross market value of total real estate equity AUM reached $31.1 billion, both MIM platform records.
“2019 was an exceptional year for our commercial real estate platform, as a favorable market environment allowed us to opportunistically pursue assets that we believe offer attractive long-term value,” said Robert Merck, senior managing director and global head of real estate and agriculture for MetLife Investment Management. “We are proud of what we have achieved for our policyholders and clients, and we strive to deliver continued strong results while carefully managing risk in the coming year.”
MIM’s real estate platform comprises debt and equity origination and asset management capabilities across 11 domestic and international offices.
MIM’s commercial mortgage team delivered a record year of production, with 227 deals totaling $15.9 billion. MIM also continued to see strong institutional investor demand for a range of investment solutions, in particular, income-related commercial mortgage investment strategies. This origination and institutional investor activity increased the gross market value of total commercial mortgage loan AUM to $69.4 billion as of December 31, 2019.
On the real estate equity side, acquisition activity increased significantly, reaching $3.7 billion in 2019. MIM continued to acquire assets selectively in markets that it believes will enhance the expanding portfolios of its investment management clients, including the completion of a $1.8 billion asset swap transaction with a long-term strategic partner. This transaction provided MIM with 100% ownership of top-quality properties in major markets. Given the continued strong growth of the MIM platform, the gross market value of total real estate equity AUM surpassed $30 billion for the first time as of December 31, 2019.
MIM also continued to expand its international portfolio in 2019, significantly increasing real estate assets under management in several key global markets. In London, new production reached $1.4 billion. Across markets in Asia and Australia, MIM produced the equivalent of approximately $1.2 billion in new transactions. MIM continued to significantly expand its presence in Latin America as well, with approximately $925 million of new debt and equity production in 2019.
Commercial Mortgage Loan Production
MIM originated a number of significant commercial mortgage loan transactions in 2019, including the following:
- Cabana Bay Beach Resort (Orlando, Fla.) – $335 million hotel property first mortgage
- Advance Industrial Portfolio (multiple locations) – $314 million first mortgage on an industrial portfolio in Mexico
- One Broadway (Cambridge, Mass.) – $273 million office property first mortgage
- The Grand (Denver, Colo.) – $200 million apartment property first mortgage
- 1, 2, 4 & 5 Harbour Exchange (London, U.K.) – $206 million office 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 2019 included:
- 400 N. Studebaker (Long Beach, Calif.) – Development of two Class A industrial buildings totaling 132,500 SF
- NOVA (San Antonio, Tex.) – 412 unit garden apartment community
- Midtown Union (Atlanta, Ga.) – Mixed-use development of 355 apartment units, 606,000 SF of office, 30,000 SF of retail, and 205 key hotel
- Airport Industrial/1500 Michael (Chicago, Ill.) – 101,500 SF Class A industrial building
- 1001 Bellevue (Bellevue, Wash.) – 716,000 SF build to suit development office building fully leased to Amazon
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, 2019, had $600.0 billion in total assets under management.1 For more information, visit https://investments.metlife.com.
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 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 “believe” “will,” “strive” and “continue” 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.
Explanatory Note
The following information is relevant to an understanding of our assets under management ("AUM"). Our definitions may differ from those used by other companies.
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).
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).
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).
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.