Non-listed real estate funds just keep on ‘supersizing’, according to the annual ANREV/INREV/NCREIF Fund Manager Survey published today.
The biggest three - Brookfield, Blackstone and TH Real Estate and TIAA - have assets of €137.3 bn, €135.3 bn and €83.9 bn respectively at end-2015, according to the survey.
All three fund managers have been prodigious fund raisers over the past three years, which has allowed them to more than double – and is some cases, triple - their AUM in the period from €63.3 bn, €46 bn and €36.4 bn, according to INREV.
Not surprisingly, given the trend of ‘supersizing’ funds, the 10 largest fund managers hold 41% or €823.3 bn of the total AUM. The gross asset value of non-listed real estate assets under management globally increased by 11.7% to €2 trn in 2015.
Within the Top 10 fund managers by total AUM, the majority, including AXA Investment Managers and J.P. Morgan Asset Management, manage around €60 bn of assets.
However, once real estate assets under management are broken down by region, Aviva Investors claims the top spot by European AUM with €45.1 bn, followed by CBRE Global Investors with €41. 3bn and Credit Suisse with €37.2 bn.
Ongoing consolidation in the sector is one of the drivers behind this concentration. Of the 154 fund managers globally who took part in the survey, 20% said they have been involved in mergers and acquisitions over the last 10 years.
Of the fund managers surveyed, 44.8% were from Europe, 37.7% from the Asia Pacific region and 17.5% from North America.