Global property assets under management swelled by 15.7% to hit €3.2tn (£2.85tn) by the end of 2019, according to ANREV, INREV and NCREIF’s latest fund manager survey.
This growth was predominantly attributed to increased investor inflows and capital appreciation.
The top ten asset managers by AUM accounted for around 40% of the €3.2tn, with Blackstone heading up the list with nearly €250bn, 39% higher than Brookfield Asset Management, which recorded €180bn AUM.
PGIM Real Estate, with €159.8bn AUM, took the third spot and topped the North American rankings, while Nuveen and Hines followed with AUM totalling €118.3bn and €117.7bn respectively.
However, the 18.6% growth rate of the medium and smaller managers outstripped that of the larger managers, which grew overall by 11.5%.
Managers focused on North American strategies accounted for 36.6% of the €3.2tn of AUM, while managers in Asia-Pacific had 16.7% of the total AUM, with CapitaLand the top manager for the region with €55.7bn of AUM.
Those with European strategies accounted for 33.8% of the total AUM for 2019, with Swiss Life Asset Managers top in the region having €89.8bn of AUM, which also pushes it into the overall top 10 list for the first time. The firm’s growth displays the increasing trend of investors leveraging their platforms to raise and manage third-party capital, the survey reported.
Sectorally, the upsurge in online shopping has had a positive impact on the logistics sector, helping managers such as Prologis, which increased its AUM by almost 25% to €105.6bn, placing it sixth in the overall rankings.
Non-listed real estate vehicles accounted for 82.2%, equating to €2.6tn, of the total AUM for 2019, with funds accounting for 44.6% of the non-listed vehicles AUM.
Regionally, non-listed vehicles accounted for 90% of AUM in Europe, 79.3% in North America and 71.2% in Asia-Pacific.
Meanwhile, the survey also highlighted the ongoing trend for consolidation, with 20% of respondents reporting that they have been involved in M&A activity over the past decade and a third citing a desire to extend their geographical reach as a key motivation.
Henri Vuong, INREV’s director of research and market information, said: “The scale and prominence of the largest managers continues apace, but growth across the board is impressive. And behind the numbers there are some interesting stories to tell.
“The investor/manager hybrid is clearly making its presence felt, and we could see much more of this in the future. Likewise, appetite for consolidation shows no sign of abating and will likely only accelerate in the current market conditions.”
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