This article is from the Australian Property Journal archive
TOTAL global real estate assets under management was down over 2022 to US$4.1 trillion, while the top quarter of managers now account for 81% of total assets amidst further consolidation amongst the industry.
According to ANREV, INREV and NCREIF’s Fund Manager Survey 2023, the total real estate assets under management (AUM) stood at US$4.1 trillion from 116 respondents as at the end of 2022, down from US$4.7 trillion in the previous year.
The average AUM across all 116 respondents was at US$35.1 billion, up 8% on the US$32.5 billion reported in 2021.
“The ongoing consolidation in the non-listed real estate industry is evident as the concentration of AUM in larger fund managers persists in 2022,” said Amélie Delaunay, senior director of research and professional standards at ANREV.
The upper quartile of survey respondents accounts for 81% of total global AUM or US$3.3 trillion, with the top 10 managers’ total AUM at US$1.9 trillion and the average top 10 fund managers’ AUM at US$192.8 billion.
Furthermore, the top four managers account for almost 28% of the total real estate capital in this year’s survey, compared to 25% last year.
The top five managers were Blackstone, Brookfield, Prologis, Nuveen and MetLife, with in top three maintaining their positions in 2022 from 2021. With MetLife replaced PGIM in the top five in 2022 compared 2021.
While all managers in the top 10 had total real estate allocations of more than US$100 billion, Blackstone and Brookfield reporting AUMs exceeding US$200 billion. With Blackstone exceeding US$500 billion after increasing their total AUM by more than US$33 billion in 2022.
Non-listed real estate still represents the greatest share of total global real estate AUM, with non-listed vehicles accounting for 82% and non-listed real estate funds accounting for 60% or US$2 trillion of total non-listed real estate AUM.
In the Asia Pacific, ESR pulled in significantly ahead of the number two non-listed real estate fund manager, GLP Capital Partners, following its merger and further acquisition growth. While Goodman rounded out the top three in the region.
“It is interesting to observe that non-listed real estate AUM in APAC is dominated by single sector industrial and logistics investment managers, ESR, GLP and Goodman, which is a shift from five years ago where more diversified managers figured in the top three,” added Delaunay.
