NEW YORK CITY—MetLife Real Estate Investors is planning to raise its first real estate debt fund, MetLife Commercial Mortgage Income Fund, PERE reported Monday. Reportedly the new vehicle is scheduled to launch in the first quarter of 2015.
The new fund will originate and manage debt backed by high-quality core properties in the US, PERE reported. It will focus primarily on first mortgages and whole loans diversified by property type, geography and borrower. The loans may be fixed-rate or floating-rate, and will have three- to seven-year terms.
PERE reported that the new fund would be just the second from MetLife Real Estate Investors, which has more than $43.5 billion in commercial mortgages under management. It is considered a companion to MetLife Core Property Fund, which has raised $2.4 billion to date since its launch in 2013. The core fund is said to be generating a 14.1% gross return, outperforming its benchmark, the NCREIF Open-End Diversified Core Equity index, which has returned 8.9% year-to-date.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
