Blackstone leads upsurge in global real estate

Total global real estate assets under management rise by 11.6% 
 

29 May 2018, Amsterdam – The Blackstone Group has topped a list of global real estate fund managers for the second year running, with assets under management of €184.3 billion – up by €41 billion on the previous year, according to the Fund Manager Survey 2018, published by INREV, ANREV and NCREIF.
The survey also reveals an 11% uplift in total AUM from €2.4 trillion to €2.7 trillion in 2017.

For the first time, managers needed to achieve AUM in excess of €100 billion to feature in the top five, which this year included: The Blackstone Group, Brookfield Asset Management, PGIM, Hines and TH Real Estate.  In 2015, the equivalent figure was less than €60 billion.  

While growth was greatest among large fund managers, with the top 10 managers accounting for 38.7% of the global total, gains were made across the board with average AUM for all 162 survey participants reaching €16.7 billion, compared with €13.6 billion in 2016.

But despite the significant overall headline numbers, the largest managers in North America, Europe and Asia Pacific delivered quite different levels of total AUM at €95.3 billion, €63.0 billion and €45.9 billion, respectively.

Also, for the first time, capital from investors domiciled in Africa featured in the survey, with an admittedly tiny but perhaps structurally significant contribution of 0.7 % of total AUM, which was invested entirely in North American strategies.

Non-listed real-estate drives growth 

Non-listed real estate made up the lion’s share of total AUM globally, accounting for 83.3% or €2.3 trillion. In Europe, non-listed real estate represented 92.9% of total AUM.

Funds dominated the composition of non-listed real estate market, providing almost half of the global, and 51.3% of the European, totals; reinforcing an upward trend in investor preference for funds, which was also highlighted in the global Investment Intentions Survey 2018.  Asia Pacific strategies, in particular, showed a significant proportion of AUM (58.8%) being attributed to non-listed real estate funds.  

Consolidation and sources of capital

One in four fund managers recorded having been involved in merger and acquisition activity over the past decade, slightly up on last year and continuing the trend for consolidation, possibly explaining the dominance of large players.  

As in previous years, this survey showed that the bulk of capital was contributed by pension funds – 51.3% in Asia Pacific, 47.3% in North America and 43.0% in Europe.  In Asia Pacific, sovereign wealth funds were the second most significant contributors of capital at 15.6%; while in Europe this slot was held by insurance companies at 31.2%.

Commenting on the findings, Lonneke Löwik, INREV’s CEO, said: ‘Real estate is clearly firing on all cylinders with the top ten players making very sizeable gains. One of the really exciting elements of this year’s survey is that non-listed funds have proved a powerful engine for overall growth. It’s a picture we’ve seen emerging over the past four years and all the indications are that this trend is set to continue.’

– Ends –    

For further information, please contact: 

Johlyn da Prato, johlyn.da.prato@inrev.org, +31(0)621397456
Justin St Clair-Charles, inrevteam@firstlightpr.com | +44 (0) 7769 644 059
Jack Rodgers, inrevteam@firstlightpr.com | +44 (0) 7580 427 746

Notes to Editors
 

Fund Manager Survey 2018

The ANREV / INREV / NCREIF Fund Manager Survey explores real estate assets under management, providing insights into regional compositions and vehicle types.

The survey was launched in 2011 and since 2015 was expanded to include global coverage. It is now published at the end of May each year.

This year’s survey includes 162 managers and represents total real estate assets under management of €2.7 trillion as at end 2017.

About INREV

INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe. 

INREV has 422 members which include 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere. 

The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands. 

About ANREV

ANREV is the Asian Association for Investors in Non-Listed Real Estate Vehicles, a not-for-profit organisation based in Hong Kong. ANREV's agenda is driven by the members, in particular the investors, and is focused on improving transparency and accessibility of market information, promoting professionalism and best practices, sharing and spreading knowledge. Fund managers, investment banks, lawyers and other advisors provide support in addressing key issues facing the Asian non-listed private equity real estate fund markets.

ANREV is a sister organisation to INREV in Europe and works with a number of associations across Asia Pacific and North America on research and professional standards. http://www.anrev.org

About NCREIF

Based in Chicago, Illinois, the National Council of Real Estate Investment Fiduciaries (NCREIF) is an association of institutional real estate professionals who share a common interest in their industry.

They are investment managers, plan sponsors, academicians, consultants, appraisers, CPAs and other service providers who have a significant involvement in institutional estate investments. They come together to address vital industry issues and to promote research.

NCREIF produces several quarterly indices that show real estate performance returns using data submitted to us by their Data Contributing Members.
https://www.ncreif.org/