MetLife and SunTrust Enter Three-Year Commercial Real Estate Agreement Up to $5 Billion
NEW YORK--(BUSINESS WIRE)-- MetLife, Inc. (NYS: MET) and SunTrust Banks, Inc. (NYS: STI) announced today that SunTrust will finance commercial real estate mortgages originated and managed by MetLife Real Estate Investors. This agreement for MetLife's newly created investment management platform is structured over three years with a possible overall investment from SunTrust up to $5 billion, subject to approval of each loan, and reinforces SunTrust's commitment to commercial real estate.
"We welcome SunTrust as a client and partner as it brings strong regional and national expertise that complements our long-standing real estate investment heritage," said Steven J. Goulart, executive vice president and chief investment officer of MetLife, Inc. "This unique partnership supports our larger strategy to provide innovative and reliable investment vehicles to our clients."
MetLife recently launched an institutional asset management business to leverage its capabilities to invest on behalf of institutional clients. The new platform builds upon the company's expertise and success in originating both commercial mortgages and private placement debt as well as investing in real estate equities.
Since its inception, the new division has been tapping into its local market knowledge and long-standing industry relationships to uncover top-quality investments, including the strategic partnership with SunTrust, that offer attractive risk-adjusted returns.
"As the commercial real estate market continues to regain its footing, we are actively seeking opportunities that make sense for our clients, SunTrust and our investors," said Walt Mercer, executive vice president and head of Commercial Real Estate at SunTrust. "This agreement with MetLife, a proven and well-respected real estate investment leader, satisfied all of our criteria and we look forward to its potential."
With more than 100 years experience of real estate investing, MetLife is one of the largest portfolio lenders in the industry with $43.1 billion in commercial mortgages outstanding at the end of 2012, and with more than $9.6 billion in commercial mortgage loan originations in 2012.
"Our goal is to be one of the top five institutional real estate investment managers, and with this mandate from SunTrust, we are confident the company is headed in the right direction," said Robert Merck, global head of MetLife Real Estate Investors. "We will continue to offer institutional investors our market-leading origination platform, underwriting expertise and superior customer service to earn and retain their business."
MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com
About SunTrust Banks, Inc.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of June 30, 2013, SunTrust had total assets of $171.5 billion and total deposits of $127.6 billion. Through its flagship subsidiary, SunTrust Bank, the Company operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The Company also serves clients in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through its various subsidiaries, the Company provides mortgage banking, asset management, securities brokerage, and capital market services. SunTrust's Internet address is suntrust.com.
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