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Asset Managers Investing in Real Estate

by Jonathan Ma

  • 08 Feb 2012
  • RE

Asset managers account for 5.3% of all real estate investors, and have assets under management totalling $4.75tn. Fifty-nine percent are Europe-based, 27% are North America-based and 14% are based in Asia and Rest of World.

As of February 2012, 12% of asset managers had total assets of over $100bn and a further 12% had total assets of $50-99.9bn. Twenty-five percent of asset managers had total assets of $10-49.9bn and 52% had total assets of less than $10bn.

The largest asset manager in terms of assets under management is the Netherlands-based APG - All Pensions Group, which has total assets of €274bn ($349bn). APG has an allocation of 10% to real estate and has a preference for core, core-plus, debt, distressed, opportunistic, and value added fund strategies.

Asset managers invest in a wide range of real estate funds. Thirty-four percent of asset managers have an interest in real estate funds adopting an opportunistic strategy. Thirty-one percent of asset managers invest in value added funds, 28% in core funds, 21% in core-plus funds and 15% in debt and distressed strategies. A small percentage of asset managers invest in secondaries and funds of funds.

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