CapitaLand tops region with $78b in real estate assets

Asia-Pacific recorded $812b in real estate assets under management last year: Survey

Local developer CapitaLand has the biggest real estate assets under management in the Asia-Pacific, a region that is becoming a major force in the sector.

The Asia-Pacific recorded US$588.8 billion (S$812 billion) in real estate assets under management (AUM) last year - 18.4 per cent of the US$3.2 trillion global total, according to a survey.

CapitaLand led the way in this region with US$55.9 billion (S$78 billion) in AUM, Singapore-based logistics group GLP was second with US$36.3 billion, and Mapletree was next with US$28.3 billion.

Non-listed real estate, including funds, joint ventures and debt products, made up 73.6 per cent of AUM in the Asia-Pacific - less than the 87.7 per cent for Europe and 75.2 per cent for North America.

Globally, non-listed real estate represented 84 per cent - or US$2.7 trillion - of the US$3.2 trillion total AUM.

Within the Asia-Pacific, non-listed funds made up 57.2 per cent of the AUM held by non-listed real estate vehicles, in line with 57.8 per cent for Europe and 51.1 per cent for North America.

In terms of investor composition in this region, pension funds represented 50.2 per cent of non-listed direct real estate AUM. Pension funds accounted for 43.8 per cent for Europe and 42.1 per cent for North America.

Sovereign wealth funds are the next largest source of capital for real estate in the region, making up 15.7 per cent of AUM, followed by insurance companies with 11.2 per cent.

In terms of investor composition in this region, pension funds represented 50.2 per cent of non-listed direct real estate AUM. Pension funds accounted for 43.8 per cent for Europe and 42.1 per cent for North America.

Globally, Blackstone Group made history by breaching the US$200 billion mark for the first time, reporting US$230.6 billion in real estate AUM, a 19 per cent increase from US$193.8 billion in 2017, and topping the overall ranking of total real estate AUM globally.

It was followed by Brookfield Asset Management, with total real estate AUM of US$187.3 billion, a surge of 20.5 per cent from the previous year.

The general uptick in AUM volumes reflected continuing consolidation in the industry.

Almost a fifth of managers reported involvement in mergers or acquisitions over the past 10 years, with 30 per cent of them citing the expansion of global footprint as the main motivation.

The survey was conducted by the Asian Association for Investors in Non-Listed Real Estate Vehicles, European Association for Investors in Non-Listed Real Estate Vehicles, and the National Council of Real Estate Investment Fiduciaries.

"The surge in total real estate assets under management... is further evidence of real estate's important diversification role," said Ms Amelie Delaunay, director of research and professional standards at the Asian Association for Investors in Non-Listed Real Estate Vehicles.

"It is clear from the findings that non-listed real estate funds are the vehicle of choice for investors looking to gain exposure to this important asset class."

A version of this article appeared in the print edition of The Straits Times on May 23, 2019, with the headline 'CapitaLand tops region with $78b in real estate assets'. Print Edition | Subscribe