24 May 2017, Amsterdam – The total value of real estate assets under management (AUM) reached €2.4 trillion in 2016, up 20.1% on the €2 trillion peak achieved the previous year, based on an increase in the sample size of the global Fund Manager Survey 2017. The joint report by INREV, ANREV and NCREIF, also revealed significant growth in the average AUM of the top 50 global real estate fund managers with a 14.9% uplift from €35.6 billion in 2015 to €40.8 billion.
The top ten global fund managers accounted for 38.8% of the overall total and the average total AUM of the top three fund managers reached €133 billion versus €127.8 billion the previous year. However, the average AUM of all respondents was up from €13.1 billion to €13.7 billion, indicating an increase in funds under management for all managers regardless of size.
Blackstone Group topped the overall rankings, followed by Brookfield Asset Management, and PGIM Inc. in third position, which jumped six places from ninth the year before. Principle Real Estate Investors and Hines joined the top ten global fund managers by total AUM, displacing LaSalle and Invesco. Only two European managers – AXA Investment Managers - Real estate and CBRE Global Investors – featured in the global top ten, but AXA dominated the list of European managers.
One in five survey respondents said they had been involved in M&A activity over the past decade, reflecting the continuing trend for consolidation – particularly among larger managers.
Non-listed real estate vehicles – including funds, separate accounts, joint ventures and club deals – accounted for €1.9 trillion (80.4%) of total AUM. However, there were notable differences in regional investment strategies with non-listed real estate funds and private REITs accounting for 53.4%, 49.5% and 50.6% of total AUM in Europe, North America and Asia Pacific, respectively.
There are also regional differences in the size of non-listed real estate funds. While funds make up almost half of total AUM in both Europe and North America, the average fund size id €0.4 billion and €1.5 billion respectively, showing a sizeable value difference in favour of North American vehicles.
Henri Vuong, INREV’s Director of Research and Market Information, commented: ‘This survey suggests that big is beautiful. The size of the real estate pie is clearly continuing to grow with non- listed vehicles remaining a dominant part of that expansion. The survey also echoes investors’ stated appetite for greater allocations to real estate overall. It seems there’s plenty of dry powder waiting to be deployed.’
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For further information, please contact:
Kirsty Wilson, kirsty.wilson@firstlightpr.com, +44 (0) 20 3434 3840
Justin St Clair-Charles, justin.scc@firstlightpr.com, +44 (0) 20 3617 7233
Notes to Editors
About the INREV Fund Manager Survey 2017
The ANREV / INREV / NCREIF Fund Manager Survey 2017 explores total real estate assets under management (AUM) of all real estate fund management companies, providing greater insights into regional composition and vehicle types. The survey was conducted on a global basis with the participation of 177 fund managers globally – 90 from Europe (50.8%), 52 from Asia Pacific (29.4%) and 35 from North America (19.8%).
The combined value of the assets under management was €2.4trillion. All figures in the report are quoted as at 31 December 2016 unless otherwise stated.
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 members include around 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. Forty new members joined INREV in 2016.
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/