MetLife Hits New High on CRE Loans

NEW YORK CITY—In keeping with life companies' bullish outlook on commercial real estate, MetLife Inc. said Thursday it had originated $12.1 billion in CRE loans globally during 2014. The originations, through MetLife Real Estate Investors, were up 5% over the prior year's total and set a company record for originations in the space.

MetLife's third-party asset management business also had a strong year, originating more than $800 million in commercial mortgage loans on behalf of its institutional clients. The company also committed to invest approximately $1.7 billion in real estate equity in 2014, either through direct acquisition or as part of joint venture partnerships. The largest of those was its JV with Norges Bank Investment Management on One Beacon St. in Boston, an office tower which the insurer and the Norway's sovereign wealth fund acquired from a joint venture of Beacon Capital Partners and Alliance for $561 million.

Additionally, MetLife formed a new JV with Newport Beach, CA-based Panattoni Development Co. to develop an industrial portfolio totaling nearly 6.5 million square feet across four states. In '14, the JV announced the construction of the Lambert Farms Distribution Center, a three-million-square-foot facility outside Atlanta, and three warehouse facilities totaling 900,000 square feet near Seattle.

Although MetLife has been active on all fronts domestically, its largest CRE loan origination last year was in the UK, a $508-million senior loan on the Forest Portfolio, collateralized by three class A office properties in central London. In all, MetLife originated more than $2.1 billion worth of loans in the UK during '14.

“MetLife remained a very active real estate investor in 2014 across a number of sectors, including commercial mortgages, real estate equity, and investments on behalf of our institutional clients,” sums up Robert Merck, senior managing director and global head of real estate investments for MetLife. “We strengthened our position as a leader in commercial mortgage lending both domestically and internationally. In addition, we expanded our activity in the asset management space and anticipate continuing to create attractive opportunities for institutional investors in 2015.” He adds that the current year “will offer ample opportunities for equity deals for institutional investors.”