Asian real estate assets with fund managers reach USD245 billion
Fund managers have USD244.8 billion of real estate assets under management (AUM) in Asia-Pacific, according to the latest ANREV research. The AsiaProperty/ANREV Asian Fund Managers Survey 2011 shows that the 54 respondents manage USD826.7 billion of real estate assets worldwide, of which USD244.8 billion is in Asia. The fund managers run 268 non-listed property funds in Asia and 722 globally.
“This year’s survey results see a 37 percent rise in Asia’s AUM. This is a sign of growth in the market but may in part also be attributed to more participants in the survey, which highlights the fund managers’ increasing support of transparency,” said Jeremy Stewardson, ANREV executive director. ANREV is the Asian Association for Investors in Non-listed Real Estate Vehicles Limited, a non profit organization driven by institutional investors in Asian non-listed real estate vehicles. It now has 130 member companies in 10 countries.
The 2011 survey results, based on June 30 figures, show that Morgan Stanley retains the top spot as the largest real estate fund manager in Asia, with AUM of USD29 billion. It is followed by Australia’s AMP Capital Investors with USD17.9 billion and Nomura Real Estate Asset Management with USD13.6 billion. There are also the first signs of change to the fund management landscape resulting from a number of mergers and acquisitions that have recently taken place.
Almost half, or 48 percent, of the fund managers that responded to the survey have more than USD2 billion of AUM in Asia, managing an average of around six Asian non-listed real estate funds each.
Mid-sized managers, or those that have between USD500 million to USD2 billion assets under management in Asia, accounted for 28 percent of respondents. They manage an average of five Asian non-listed real estate funds each. Managers which have assets in Asia of up to USD500 million made up 24 percent of the sample universe and managed an average of 1.8 funds each.
The survey also found that 83.6 percent of investors in non-listed real estate funds were institutional investors with only eight percent of investment coming from retail investors. The remainder is manager co-investment. The largest single type of institutional investor was pension funds, comprising 43 percent of the total investment.
The risk profile of Asian property funds is fairly diverse. Opportunity is the preferred approach at 45.1 percent while core is the second most common style at 33.6 percent of funds investing in Asia-Pacific. The remaining 21.3 percent are value added funds.