Global real estate assets under management hits €2.8 billion 2018, led by Blackstone

Blackstone recorded total real estate assets under management (AUM) of €201.6 billion and maintaining its lead for the third consecutive year.

In second place to Blackstone was Brookfield who again secured second place for the third year running with total real estate AUM of €163.8 billion. Next was PGIM with €147.7 billion who also held the third-place spot last year. Meanwhile, Nuveen overtook Hines to take fourth place with an AUM of €108.9 billion. Hines concludes the quintet of managers with €104.4 billion.

Source: ANREV / INREV / NCREIF

The leading European manager was UBS with €83.8 billion, placing it at number eight in the league table. Collectively, the top 10 managers accounted for 40.2% of the overall global real estate assets under management (AUM) above previous highs, indicating continued concentration at the top of the rankings.

However, even among this leading group there was a wide disparity with the top and bottom managers separated by almost €140 billion. The average AUM across all managers in the survey stands at €16.1 billion slightly above the previous year’s average of €15.7 billion. Seven of the top 10 managers were North American-domiciled players with a global footprint.

Regional split

Europe and North American strategies accounted for the largest percentage of total AUM at 35.3% and 34.8%, respectively, ahead of Asia Pacific at 18.4%. Each of the top three managers in North America posted AUM in excess of €77 billion. In Europe, the three leading managers hit €47 billion or more; while in Asia Pacific the first three managers all achieved AUM of €24 billion plus.

Lion’s share for non-listed

Non-listed real estate vehicles (including funds, separate accounts, JVs, club deals, debt funds and funds of funds) accounted for 82.9% or €2.3 trillion of total assets under management.

Funds accounted for around 45% of all AUM pointed at the non-listed real estate segment, reinforcing investors’ ongoing faith in these vehicles. Separate accounts, JVs and clubs (which are both favoured by larger investors) collectively made up almost 30% of AUM within non-listed. Non-listed real estate vehicles accounted for 87.7% of AUM for European strategies, compared with 75.2% for North American strategies and 73.6% for Asia Pacific strategies.

This year’s ANREV / INREV / NCREIF Fund Manager Survey survey includes 173 managers and represents total real estate assets under management of €2.8 trillion as at end 2018

The analysis concludes tomorrow.

james.wallace@realassetmedia.com