Friday 29 Mar 2024
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SINGAPORE (May 25): Singapore-based property groups CapitaLand and Mapletree Investments have once again topped overall rankings in the list of Asia Pacific managers with the highest total real estate assets under management (AUM), according to the ANREV/INREV/NCREIF Fund Manager Survey 2017.

For the second time, the survey has a global outreach, with 177 fund managers globally completing the questionnaire. The majority of fund managers were from Europe (90) followed by those domiciled in Asia Pacific (52) and North America (35).

Globally, it was found that total AUM rose to US$2.5 trillion (S$3.5 trillion) as compared to S$2.2 trillion a year ago, with fund managers of all sizes increasing the value of their assets to bring average AUM among the top 50 global real estate managers 25.8% higher to US$43 billion.

One in five respondents in the global survey said they had been involved in M&A activity over the past decade.

In a Thursday press release, ANREV says this reflects the continuing trend for consolidation – particularly among larger managers.

Blackstone Group topped the overall rankings for total AUM, followed by Brookfield Asset Management and PGIM in third position.

By regional strategy, 17.1% of total global real estate assets were invested in Asia Pacific.

This is compared to 34.4% in Europe, 36.8% in North America, 11.1% in global strategies, and 0.6% in South America and 0.002% in Africa.

In Asia Pacific, CapitaLand ranked first with AUM totalling US$42.4 billion. China’s Fosun Property came in second place with US$32.4 billion, and Mapletree Investments in third with US$23.6 billion.

The majority of the region’s assets continued to be invested in non-listed funds and private REITs, with 50.6% invested in these vehicles compared with 61.0% in 2016.

This was followed by separate accounts (direct), which made up 18.5% of Asia Pacific’s total AUM. This trend was broadly similar in other regions, with non-listed real estate funds and private REITs accounting for 53.4% of European AUM, 49.5% in North America and 65.5% globally.

Notably, non-listed real estate funds accounted for only 20% of Asia Pacific’s total value of non-listed real estate vehicles’ AUM, contrasting to Europe where they accounted for 46.2% by number.

“A key trend of the 2017 survey is that fund managers of all sizes grew their assets under management over the past year demonstrating the attractiveness of real estate investment globally. The big managers also continue to get bigger, shown through the 25.8% uplift in the AUM of the top 50 from 2016,” says Amélie Delaunay, director of research and professional standards at ANREV.

“As suggested by the ANREV/INREV/PREA Investment Intentions Survey earlier in the year, JVs and club deals are one of the most preferred routes to market, and account for a significant proportion of the value in Asia Pacific strategies at 28.0%, compared with 16.0% in North American and 10.1% in European strategies,” she adds. 

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