Total real estate assets under management (AUM) stands at €3.2 trillion at the end of 2019, representing an increase of 15.7% from the €2.8 trillion recorded at the end of 2018, according to the Fund Manager Survey 2020, published by ANREV, INREV and NCREIF. The ten largest managers account for 39.5% of the total AUM for total real estate.
The average AUM per manager increased from €16.1 billion in 2018 to €23.1 billion in 2019. The three biggest real estate managers Blackstone, Brookfield and PGIM, reported real estate portfolios in excess of €150 billion. Blackstone maintains its lead for the fourth consecutive year, reporting an AUM above €240 billion.
There are some variations across regional investment strategies worth noting. The two largest real estate managers among Asian Pacific strategies are substantially larger than its peers. For European and North American strategies the gap between the largest managers and the rest is less pronounced.
The consolidation trend observed in previous years kept its path during 2019, with more than 20% of the managers responding that they were involved in mergers and acquisitions (M&A) activities over the last ten years, at the same level as in previous years.
All managers included in the top five have their head office in North America (the USA or Canada), and all of them increased their real estate AUM compared with 2018.
All those managers included in the top ten reported AUM in excess of €85 billion. This represents a notable increase from 2018, when a manager needed to report €65 billion to get into the top ten, €20 billion less.
Among the top managers there are differences when it comes to regional strategies. PGIM remains at the top of the list for managers operating North American strategies while Swiss Life took the lead for those managers with European strategies. In Asia Pacific CapitaLand remains in the first-place position while for global strategies it was Blackstone who, again, kept the first position.
Non-listed real estate still comprises the biggest share of total real estate AUM. Of the €3.2 trillion, non-listed accounts for 82.2% or €2.6 trillion with funds representing almost half, 44.6% of the non-listed AUM.