20% Increase In 2015 in Overall International Worth of Managed Property Assets to $2.7 Trillion Underscores Unsated Financier Hunger for Real Estate
Blackstone Group LP edged out Brookfield Possession Management Inc. to recover its position as the world’s biggest property possession supervisor as the total value of global real estate possessions under management reached $2.7 trillion (Euro 2.4 trillion) in 2016, up more than 20% from the previous year, according an annual joint report by 3 real estate financial investment management companies.
Property possessions under management (AUM) in 2015 exceeded $161.5 billion United States for Blackstone, compared to $158.5 billion for Brookfield and $139.3 billion for PGIM, Inc., the property management arm of insurance provider Prudential Financial, inning accordance with this year’s Fund Supervisor Survey by the Asian Association for Financiers in Non-Listed Real Estate Vehicles (ANREV), the European Association for Investors in Non-Listed Realty Cars (INREV) and the National Council for Real Estate Fiduciaries (NCREIF).
The survey even more revealed a nearly 15% boost in AUM amongst the top 50 international realty fund supervisors, to $46 billion.
“The size of the property pie is plainly continuing to grow with non-listed cars staying a dominant part of that expansion,” INREV research study director Henri Vuong said. The study also echoes financiers’ mentioned cravings for higher allotments to real estate overall. It seems there’s plenty of dry powder waiting to be released.”
Blackstone, which collected huge amounts of capital from pension funds, insurance provider and other organizations, amazed numerous observers with its entry into the controversial non-traded REIT area last fall. The private-equity behemoth likewise doubled down on the single-family rental market, re-entered the logistics market with the $1.4 billion purchase of 101 properties LBA Realty and made significant financial investments in elders real estate and basically anything else industrial real estate.
Toronto-based Brookfield directly held the top area in the 2015 and 2016 surveys. Amongst its transactions in 2015 was the purchase of 135 manufactured housing neighborhoods from NorthStar Realty Finance Corp. for $2 billion.
PGIM, previously Prudential Financial investment Management, jumped from ninth in the fund manager survey in 2015 to 3rd place last year. PGIM Realty, the fund’s realty arm, completed more than $12 billion in 220 deals worldwide on behalf of investors in 2016, including about $8 billion in the United States, consisting of financial investments in realty debt and equity and home personalities.
Principle Real Estate Investors and Hines signed up with the top 10 global fund supervisors by total AUM, displacing LaSalle Financial investment Management and Invesco.