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Property’s global assets under managment hit €3.3tln: INREV

In a further demonstration of the extreme buoyancy of the logistics and industrial real estate sector, Prologis’s assets under management grew to €121 billion in 2020, and the company moved up from sixth to third place in the INREV top 10 ranking of global fund managers.

The US-headquartered logistics specialist was only outranked by Blackstone Group (AUM €260.5 billion) and Brookfield Asset Management (€172.4 billion). Prologis also came in ahead of PGIM Real Estate (fourth with €118.8 billion), and Nuveen (fifth with €108.4 billion).

Despite the challenge created by the global pandemic total global real estate assets under management hit €3.3 trillion in 2020, up from €3.2 trillion in the previous annual fund manager survey which is jointly published by INREV (the European Association for Investors in Non-Listed Real Estate Vehicles) and its Asian and North American counterparts, ANREV and NCREIF respectively.

Although the increase in the total is only about 3% year on year, INREV said over the past decade total AUM has more than tripled from €0.9 trillion in 2009.

Around 37% of the latest total is attributable to the top 10 global managers, each of which posted an AUM of at least €80 billion in 2020. The largest 39 managers in the upper quartile of survey respondents accounted for 78%.

“Interestingly, despite the greatest concentration of global AUM in larger fund managers, the growth in 2020 came from the lower quartiles,” the association said.

European strategies account for over 39% of the total

On a regional basis European strategies account for 39.1% of total global AUM, overtaking those in North America (32.2%) and Asia Pacific (17.9%), while global strategies account for 10.5%.

At an individual manager level, AXA IM Alts tops the European strategies list with AUM of €76.1 billion, followed by Swiss Life Asset Management in second place (€73.7 billion) and The Blackstone Group (€65.9 billion) in third. All of the managers included in the European strategies’ top ten list posted AUM of more than €39 billion.

The proportion of total global AUM attributed to non-listed real estate debt products rose from 7.6% in 2019 to 9.4% in 2020. In Europe, this increase was more marked growing to 8.1% from 3.6% the preceding year.

“The evolution of the global growth in fund managers’ AUM speaks to a continuing robust appetite for the asset class. This is particularly encouraging given the challenges of 2020 in light of the global health pandemic,” said INREV CEO Lonneke Löwik.