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Survey: Largest RE managers to get even bigger

Taken together, the top ten fund managers were responsible for around 40 percent of the total AUM in real estate, as the trend towards consolidation continues, according to research from three global industry trade bodies.

Consolidation within the real estate investment management industry means the biggest fund managers have been getting even bigger, according to new joint research from real estate trade associations INREV, ANREV and NCREIF.

A survey conducted by the industry bodies revealed that one in five fund managers say they have been involved in M&A activity over the last 10 years, and taken together, the top ten fund managers were responsible for around 40 percent of the total assets under management (AUM) in the real estate sector.

“Investors are increasingly looking for global exposure and this has been a key driver of acquisitions as fund managers look to bring in more local market expertise,” commented Henri Vuong, INREV’s director of research and market information.

“Industry consolidation continues apace and there is nothing to suggest there will be a slowdown in M&A activity in the near future. Whatever the ‘optimum’ size for a fund manager might be, we clearly haven’t reached that point yet.”

Fund managers across North America, Europe and Asia Pacific also have 10 percent more AUM than the €1.8 trillion total recorded in 2014, and now manage real estate assets worth €2 trillion, said the survey.