This article is from the Australian Property Journal archive
GLOBAL real estate assets under management have fallen for a second consecutive year, retracting 2.5% to US$4.1 trillion over 2023.
According to ANREV, INREV and NCREIF’s Fund Manager Survey 2024, real estate AUM has continued to fall off from the historic peak of US$4.7 trillion in 2021.
At the same time, the survey found the top 10 managers saw an 8% increase in AUM per manager over the year.
The top 10 managers saw their total AUM surpass US$2 trillion in 2023, reflecting an average of USD$209.4 billion per manager.
These top 10 managers now represent 51% of total AUM, up from 47% in 2022.
“Despite a challenging year marked by declining values and reduced capital raising, the top 10 fund managers have significantly increased their market share, now holding over half of the total real estate AUM,” said Amélie Delauney, senior director of research and professional standards at ANREV.
“This trend towards greater concentration among the largest managers underscores their resilience and ability to attract capital even in uncertain times.”
2023 also saw some shifts in the rankings, though Blackstone, Brookfield Asset Management, and Prologis held on to their top three positioning.
While MetLife Investment Management and UBS Asset Management took up fourth and fifth position and UBS Asset Management re-entered the top 10 as the only new entrant in 2023, following their merger with Credit Suisse.
ESR was only representative of the Asia Pacific region in the top 10.
Non-listed real estate still represents the lion’s share of global AUM, accounting for 82% of the total assets.
Within this, non-listed real estate funds make up 60%, followed by direct investments through separate accounts, debt funds, and joint ventures or club deals.
While debt vehicles represent 13% of non-listed real estate allocations. With debt AUM up across all regions, up 14% globally to US$450 billion.
Additionally, North American AUM make up the most significant allocations by top fund managers on average, making up 43% of the total AUM at US$1.8 trillion.
Europe follows at 26% of total global allocations at US$1.1 trillion, with Asia Pacific strategies representing around 19% or US$766 billion.
Last month’s Capital Raising Survey 2024 from ANREV, INREV and NCREIF found that a weakened global real estate market sapped capital raising activity by a 51% over 2023.
