WHIPPANY, NJ–(BUSINESS WIRE)–MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced it has completed $18.6 billion in new commercial real estate debt and equity transactions in 2021 completed, expanding its leading position as one of the largest US and global real estate investors. MIM’s gross market value of commercial real estate assets under management (AUM) increased to $109.8 billion1 as of December 31, 2021, a reported record for MIM. As of December 31, 2021, the gross market value of the total commercial mortgage loan AUM increased to $73.0 billion2 while the gross market value of the total real estate assets reached AUM $36.8 billion.3
MIM’s commercial real estate platform includes lending and equity underwriting and wealth management capabilities in 13 offices across the US and international markets including the UK, Japan, Korea, Chile and Mexico.
“Our real estate platform has delivered record investment activity in 2021, creating value for our clients and partners despite ongoing challenges related to the pandemic. This outstanding performance is a testament to the strength of our platform, the experience and agility of our team, and our commitment to performance across cycles,” said Robert Merck, Global Head of Real Estate at MetLife Investment Management. “We look forward to building on this momentum in 2022 as we remain committed to delivering strong results to our stakeholders.”
MIM’s commercial mortgage team initiated 235 transactions in 2021, a record for MIM, with total capital in excess of $15.3 billion provided to support institutional real estate investors worldwide. These transactions involved both traditional and alternative real estate types such as life science, self-storage, student housing and prefabricated housing. In addition, the team successfully raised a closed hotel debt fund, taking advantage of favorable market conditions and benefiting from industry expertise.
In real estate investing, MIM acquired $3.3 billion in real estate in 2021, a 50% increase from its year-over-year investing activity. MIM continued to pursue assets to add to its investment management clients’ growing portfolios, such as the $825 million acquisition of One Memorial Drive, a LEED-certified office property near the cluster of technology companies in Cambridge, Massachusetts. Over the past year, the equities team has also made strategic investments in alternative sectors, including blue collar housing, manufactured housing and life sciences. Our equities team also remained active in traditional sectors such as offices, taking advantage of dislocations in capital markets stemming from the ongoing uncertainty surrounding the pandemic.
MIM continued to expand its investments outside the US in 2021, increasing commercial real estate assets under management in several key global markets. In Asia, MIM generated $781 million equivalent in new equity acquisitions and mortgage originations MIM continued to expand its presence in the UK and Latin America, with commercial mortgage originations equivalent to $576 million and $768 million respectively in 2021 .
Production of commercial mortgage loans
MIM initiated a number of significant commercial mortgage loan transactions4 in 2021, including:
238 Main Street (Cambridge, MA) – $475 million first office/life science mortgage
Palisades Village (Pacific Palisades, CA) – $235 million first mortgage mixed-use retail property
EQT Exeter Core Portfolio (Various, US) – $184 million first mortgage on Industrial Portfolio
Heitman/Life Storage National Self-Storage Portfolio (Various, USA) – First mortgage for Self-Storage Portfolio of $145 million
475 Clermont Ave (Brooklyn, NY) – $143 million first residential mortgage
Production of real estate stock investments
Major real estate equity transactions completed in 2021 include:
One Memorial Drive (Cambridge, MA) – Acquisition of a 409,422 square foot (sf) Class A office property
50&60 Binney Street (Cambridge, MA) – Joint venture recapitalization of a fully-leased Grade A Life Science building totaling 532,000 sf
Cobblestone Manufactured Housing (Various, US) – Joint venture recapitalization of 11 manufactured housing communities across 1,743 locations in Florida, Arizona, Nevada and California
Corner63 (Seattle, WA) – Walk-through development of a 139-unit Class A apartment building
About MetLife Investment Management
MetLife Investment Management, the institutional wealth management business of MetLife, Inc. (NYSE: MET), is a global public fixed income, private equity and real estate investment manager offering 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 customized investment and financing solutions designed to achieve a set of long-term investment goals and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and $669.0 billion in assets under management as of December 31, 2021.5
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 wealth management to help individual and institutional clients build a more confident future . Founded in 1868, MetLife operates in more than 40 markets worldwide and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. Visit www.metlife.com for more information.
The forward-looking statements in this press release, such as “continue,” “looking forward,” and “aim” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” described by MetLife, Inc. in its press release filings with the US Securities and Exchange Commission. MetLife’s future results could differ, and MetLife undertakes no obligation to correct or update these statements.
1 Commercial Real Estate Gross Market Value AUM represents the value of all commercial mortgage loans and real estate investments managed by MIM at estimated fair value presented on a gross market value basis (including onerous debt).
2 Gross Market Value of Total Commercial Mortgage Loan AUM represents the value at estimated fair value of all commercial mortgage loans managed by MIM, including commercial mortgage loans contained in certain real estate joint ventures located in MetLife’s general account, presented on a basis of the Gross Market Value (including onerous debt).
3 Gross Market Value of All Real Estate Equity AUM represents the value of all real estate equity managed by MIM at estimated fair value, excluding commercial mortgage loans contained in certain real estate joint ventures located in MetLife’s general account, presented at based on gross market value (including onerous debt).
4 Key transactions are intended to provide representative examples of these 2021 strategies and have not been selected to highlight previous specific profitable recommendations from MIM.
5 Total assets under management consists of all MetLife general account and segregated account assets as well as unaffiliated company/third party assets at estimated fair value managed by MIM.