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Total Global Real Estate AUM Expands to $3.2T in 2018
Global real estate assets under management (AUM) increased 12%, reaching a total of $3.2 trillion in 2018, according to The Fund Manager Survey 2019. The report, published by INREV, ANREV and NCREIF, reveals the largest manager eclipsed the €200 billion ($223 billion) mark, for the first time in the history of the survey, while all three of the top-ranking managers each exceeded $156 billion.
The Blackstone Group recorded total AUM of $225 billion, taking the top spot for the third-year running. Brookfield Asset Management and PGIM occupied the second and third positions at $183 billion and $165 billion, respectively. Nuveen Real Estate was fourth with $121.5 billion, and Hines was fifth at $116.5 billion.
INREV’s Lonneke Löwik says, “This report speaks to the robust health of our industry, with a fifth consecutive year of growth. During this period, $1.12 trillion has been added to total AUM, reflecting investors’ ongoing confidence in the asset class.”
Collectively, the top 10 managers accounted for 40.2% of the overall total. Still, even among this leading group, the survey showed there was a wide disparity with the top and bottom managers separated by nearly $156 billion. Seven of the top 10 managers were North American-based players with a global footprint.
- Europe and North American investors accounted for the largest percentage of total AUM at 35.3% and 34.8%, respectively, ahead of Asia Pacific at 18.4%.
- Non-listed real estate vehicles, including funds, separate accounts, JVs, club deals, debt funds and funds of funds, accounted for 82.9% or $2.6 trillion of total assets under management.
- Pension funds accounted for the largest proportion of capital contributed. They dominated all three regions making up 50.2% of the total in Asia Pacific, 43.8% in Europe and 42.1% in North America.
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* FX rate conversion, mid-market rates: 2019-05-22 at 16:00 UTC EUR/USD 1.12
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