Total assets under management in global real estate reached a new record in 2021, at € 4.1 trillion, exceeding the number reached at the end of 2020 (€ 3.3 trillion), according to a survey of fund managers, published this week. updated by Anrev, Inrev and NCREIF.
This study underscores the continued strong appetite for real estate as an institutional asset class, with assets under management more than doubling since 2015. Growth is broadly based: the assets of each manager under management averaged € 28.6 billion, compared to € 21.5 billion last year. The top ten global managers represent 41% of total assets, compared to 37% in 2020, with an average asset of € 169 billion. The combined assets under the management of these managers are worth € 1.7 trillion, more than half of the 2020 total.
The top ten managers are…
The top five global fund managers are Blackstone (€ 419.3 billion), Brookfield (€ 221.1 billion), Prologis (€ 189.6 billion), PGIM (€ 184.5 billion) and Nuveen (€ 133.8 billion), all of which maintain their positions compared to Results in 2020. The rest of the global top 10 consists of MIM (€ 131.2 billion), CBRE Investment Management (€ 112.9 billion), AXA .3 billion euros), UBS (100.9 billion euros) and GLP (93.7 billion euros).
In Europe, Blackstone (€ 85.7 billion) tops the rankings, followed by Swiss Life (€ 85.4 billion), AXA IM Alts (€ 82.7 billion), Union Investment (€ 54.8 billion) and abrdn (€ 48.5 billion). NN Investment Partners entered the top 10 in Europe for the first time in sixth position (€ 48.4 billion). It is followed by Credit Suisse Asset Management (€ 47.8 billion), Deka Immobilien Investment GmbH (€ 47.5 billion), Patrizia (€ 46.4 billion) and UBS (€ 45.3 billion).
With 38% of total global assets under management, North American strategies outperform European strategies (34%). Asia-Pacific strategies were in third place (16%), closely followed by global strategies (12%), which saw renewed interest. The Anrev/Inrev/NCREIF survey on capital raising reflects this and reports a record € 56 billion in capital proceeds for global real estate strategies in 2021, out of a total of € 254 billion. . “Increasing allocations to global strategies suggest that investors and managers want to take advantage of economies of scale, and that the market may reach a certain level of saturation beyond where necessary to seek diversification. vary by new opportunities “, underline the authors of the study.
The unlisted trend
Unlisted real estate vehicles represent the largest share of assets under management, i.e., 84.8% (€ 3,400 billion). Other types of real estate – such as listed products and derivatives – are worth the remaining 15.2%.
Unlisted real estate funds remain the preferred product worldwide, with 49.5% (€ 2 trillion) of all unlisted real estate assets. Next are the separate direct investor accounts, then the joint venture and the club dealsthen debt funds.
The surge in total assets under management around the world is likely, at least in part, to be a result of continued market consolidation, although this trend is slowing in all regions. Approximately 21% of respondents were involved in mergers and 15% in acquisitions in 2021. However, the survey shows a reduction in planned mergers and acquisitions in the future.
“The survey also reveals a large portion of unused commitments that, while demonstrating strong investor demand, will exacerbate the ongoing challenge for managers to deploy capital,” reviews Iryna Pylypchuk, director of research and information. in the Inrev market. “This is more relevant because it appears that the sector is emerging from the period of capital growth and entering a new stage, one focused on revenue yield for value maintenance. And outperformance.»