MIM completes USD10.7bn in commercial real estate debt and equity investments in 2020
MetLife Investment Management (MIM), the institutional asset management business of MetLife, has completed USD10.7 billion in new commercial real estate debt and equity transactions in 2020, taking its global gross market value of commercial real estate assets under management (AUM) to USD106.7 billion as of 31 December, 2020.
Gross market value of total commercial mortgage loan AUM has climbed to USD74.0 billion and the gross market value of total real estate equity AUM reached USD32.7 billion.
“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,” says 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 US and international markets, including the UK, 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 totalling USD8.5 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 USD74.0 billion as of December 31, 2020.
On the equity side, MIM acquired USD2.2 billion of properties in 2020, and the gross market value of total real estate equity AUM reached USD32.7 billion. In the past several years, MIM has increased exposure to property types such as last-mile distribution centres 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 USD843 million in new transactions. MIM also continued to grow its presence in the UK, with the equivalent of USD527 million of commercial real estate debt originations in 2020.