MetLife wins $500m US real estate lending mandate

MetLife has won a $500m separate account mandate to invest in US commercial real estate loans, Real Estate Capital has learned. The firm, through its MetLife Real Estate Investors platform, will originate and service fixed and floating rate first mortgage and mezzanine loans across office, multi-family, retail, industrial and hotel assets. The investment was made by a US reinsurance company.

MetLife has won a $500m separate account mandate to invest in US commercial real estate loans, Real Estate Capital has learned.

Through MetLife Real Estate Investors, the company will originate and service first mortgage and mezzanine loans across office, multi-family, retail, industrial and hotel assets. The investment was made by a US reinsurance company.

Screenshot 2015-03-12 at 1.23.48 PMThe mandate will issue fixed and floating rate loans of at least $20m. The fixed rate loan terms will stretch between five and 30 years, while the floaters will carry three- to 10-year terms.

MetLife Real Estate Investors’ debt platform currently has total commitments of more than $6bn in separately managed accounts from five insurance companies and one bank, with $1.3bn in assets under management.

In November the company closed a similar commercial mortgage mandate for a US life insurer to invest $300m, when it was also preparing to launch and begin fundraising for its first debt fund, MetLife Commercial Mortgage Income Fund.

Led by Robert Merck, MetLife Real Estate Investors is one of the largest commercial real estate lenders. The business originated approximately $12.1bn globally in commercial real estate loans in 2014, topping 2013’s $11.5bn and setting a company record. Of the $12.1bn total, $8.6bn were US loans.

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