SunTrust Banks (STI) in Atlanta has committed $5 billion to fund commercial mortgages originated by MetLife (MET).
The $172 billion-asset company has agreed to fund MetLife's newly formed real estate investment management platform, MetLife Real Estate Investors, for three years, the companies announced Monday. MetLife Real Estate Investors originates and manages commercial mortgages on behalf of institutional investors.
MetLife originated approximately $9.6 billion worth of commercial mortgages in 2012, and holds commercial mortgages with $43.1 billion outstanding as of the end of last year.
"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," Robert Merck, head of MetLife Real Estate Investors, said in a news release.
Last month, SunTrust said that its mortgage banking segment had a loss of $76 million in the second quarter, as its operating expenses reached $339 million.