Real estate assets hit record high

Global real estate assets under management reached a record €3.2 trillion at the end of 2019, according to data from the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV), European Association for Investors in Non-Listed Real Estate (INREV) and National Council of Real Estate Investment Fiduciaries (NCREIF), a 16% rise on the previous year.

Blackstone Group topped the list with AuM of nearly €250 billion, ahead of Brookfield Asset Management with €180 billion and PGIM Real Estate with €159.8 billion.

Despite the gap in average AuM separating the top 10 managers from the rest, the overall growth rate for medium and smaller managers outstripped that for larger managers at 19% and 12%, respectively.

Managers focused on North American strategies accounted for the highest percentage of total AuM at 37%, closely followed by those in Europe with 34%, while managers in Asia Pacific contributed 17% to the total.

INREV director of research and market information, Henri Vuong, said that while the scale and prominence of the largest managers continued apace, growth across the board was impressive.

“And behind the numbers there are some interesting stories to tell. The investor/manager hybrid is clearly making its presence felt and we could see much more of this in the future. Likewise, appetite for consolidation shows no signs of abating and will likely only accelerate in the current market conditions,” he said.