Property Funds World Newsletter

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NEWSLETTER | 4 Jun 2020

Global real estate in rude health, pre-Covid-19

The current state of play in the global real estate market may be difficult to assess right now due to the effects of the coronavirus pandemic, but the results of a survey by ANREV, INREV and NCREIF, suggest the world of property investment was in rude health pre-Covid-19.

According to the Fund Manager Survey 2020, total global real estate assets under management (AUM) hit a record EUR3.2 trillion at the end of 2019, a sizeable increase of 15.7 per cent on the previous year's total. And with the pandemic preventing a number of managers from taking part in the survey, the rate of growth – which has largely been attributed to increased investor flows and capital appreciation – could be even greater than reported.

Top of the heap in terms of AUM is the Blackstone Group with assets of nearly EUR250 billion, with the top 10 asset managers accounting for around 40 per cent of the overall total.

While older people are among those most at serious risk from coronavirus, new research from Savills this week suggests that the growing global population of retirees – predicted to rise 1.5 billion to 2.1 billion by 2050 – will drive an increase in pension fund allocations to the property sector. Savills says the deficit between retirees’ needs and pension provision, which is growing by USD28 billion every 24 hours, will hit tofive times the size of the global economy by 2050, but that the long-term secure income streams provided by real estate are increasingly being seen as a good ‘annuity match’.

Sticking with Savills, the company’s latest Market in Minutes report predicts that retail sale and leaseback (SLB) transactions will pick up where they left off post-pandemic. A total of EUR2.4 billion of SLB retail deals were transacted in 2019, accounting for 6 per cent of the overall retail investment volume, and activity is expected to increase again in the latter part of 2021 as the retail investment market as a whole starts to recover.

And finally, we've launched a survey of our own to help us learn a little bit more about you – our readers – and find out what you like about what we do and what you think we could do better.

The survey should only take a few minutes to complete and gives you the chance to have a say in how we continue to provide you with all the latest news and industry insights you have come to expect from Property Funds World, so have your say here…

Property Funds World

Global asset managers achieve record EUR3 trillion of real estate AUM

Thu | 4 Jun 2020, 12:57

Total global real estate assets under management (AUM) hit a record EUR3.2 trillion at the end of 2019, according to the Fund Manager Survey 2020, published today by ANREV, INREV and NCREIF.

Thu | 4 Jun 2020, 12:57

Savills has released a series of articles and interviews as part of its Impacts research programme, examining the various social, environmental, demographic and technological ‘tipping points’ immediately facing global real estate.

Thu | 4 Jun 2020, 12:57

Retail sale and leaseback (SLB) transactions are expected to pick up again after the Covid-19 pandemic has passed, according to Savills latest Market in Minutes report.

Thu | 4 Jun 2020, 12:57

Primonial Group has launched ESI, a pan-European open-ended real estate fund dedicated to social infrastructure and covering healthcare real estate primarily but also educational facilities and affordable housing.

Thu | 4 Jun 2020, 12:57

Irish property company IPUT Real Estate (IPUT) has agreed a new and upsized EUR300 million revolving credit facility (RCF) with Wells Fargo Bank.

Thu | 4 Jun 2020, 12:57

In its second sentiment survey of flexible office providers from across the world, Workthere found that 42 per cent of respondents are now positive about the prospects for the next three months, compared to only 25 per cent in April.