BOSTON-Norges Bank Investment Management, the asset manager for the Norwegian sovereign wealth fund, has partnered with MetLife Inc. on a joint venture to invest in class A office properties in key US markets over an extended period. The first result of this JV is NBIM's 47.5% stake in One Financial Center, a 1.3-million-square-foot office tower that MetLife developed here in the 1980s.
NBIM is paying $238 million for its stake, in a deal that values the property at $700 million. New York City-based MetLife has increased its stake to 52.5% from a 50-50 split, and will continue to manage the 46-story office tower. Its previous partner in One Financial Center was an affiliate of Beacon Capital Strategic Partners V.
NBIM's joint venture with MetLife marks the SWF's third US-focused real estate investment platform. Steven J. Goulart, EVP and CIO at MetLife, says NBIM's “size and investment philosophy aligns well with our own. This venture speaks to our strong capabilities in the asset management space, where we are targeting opportunities to leverage our scale to create long-term value for our investors.”
MetLife's CRE portfolio runs to $55.1 billion, including $43.1 billion in commercial mortgages. Earlier this week, it announced a partnership with Denver-based UDR Inc. to develop a 42-story apartment tower in San Francisco. MetLife will invest $300 million in the 399 Fremont project and hold a 49% stake, while the apartment REIT will own the remaining 51%.
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