UNDERSTANDING EUROPEAN NON-LISTED REAL ESTATE FUNDS. ERES Business Seminar

Transcription

1 UNDERSTANDING EUROPEAN NON-LISTED REAL ESTATE FUNDS ERES Business Seminar Brussels, 11 March 2016 INREV Research Team 1

2 Introduction INREV Research Committee represented here today by: Marcus Cieleback, Head of Research - PATRIZIA Immobilien AG Maurizio Grilli, Head of Investment Strategy - BNP Paribas Real Estate Stephen Ryan, Research Manager - INREV 2

3 Agenda Non-listed real estate industry is maturing Investors intentions for 2016 Global Real Estate Fund Index 3

4 NON-LISTED INDUSTRY IS MATURING Maurizio Grilli 4

5 The non-listed real estate industry is maturing Non-listed real estate vehicles 468 funds GAV of EUR billion Funds of funds 64 vehicles NAV of EUR 9.3 billion Debt Funds 42 vehicles Target GAV of EUR billion Source: INREV Vehicles Universe, Funds of Funds Universe and Debt Funds Universe 5

6 Gross Asset Values ( billions) Number of Vehicles Huge growth observed since Size of the European Non-Listed Real Estate Market GAV ( billions) Number of Funds 0 Source: INREV Vehicles Universe, as at 1 September

7 Capital raising pattern since 2004 Source: INREV Capital Raising Surveys,

8 Concentration at the top in 2015 Top 10 Fund Managers Worldwide Rank Company RE AUM ( bn) 1 Brookfield Asset Management The Blackstone Group CBRE Global Investors 75 4 TIAA Henderson Real Estate 68 5 AXA Real Estate 55 6 UBS Global Asset Management 53 7 Invesco Real Estate 53 8 JP Morgan Asset Management fund managers: 1,8 trillion AUM 37% of the AUM is held by the top 10 fund managers AXA Real Estate is the largest in Europe Brookfield Asset Management is the largest in US CapitaLand is the largest in Asia 9 Pramerica Real Estate Investors Principal Real Estate Investors 47 Source: INREV/ANREV/NCREIF Fund Manager Survey

9 Concentration at the top in 2012 Source: INREV Fund Manager Survey,

10 A piece of the pie for all 1. Large institutions 2. Massive private equity 3. Niche opportunistic 4. Almost private equity 10

11 INVESTORS INTENTIONS 2016 Marcus 11

12 Korea, Republic of United Kingdom Switzerland Finland Canada Italy Australia Sweden The Netherlands Denmark United States Germany Japan France % of overall portfolio Increasing allocations almost everywhere 25% Allocation to real estate 20% 15% 10% 5% 0% -5% Investor domicile Current allocation Increase to target Note: Equally weighted allocations 12

13 % of overall portfolio And from every investor type 12% Allocation to real estate 10% 8% 6% 4% 2% 0% Pension funds Insurance companies Other investors All investors Current allocations Increase to target Pension funds have the highest allocations but are only slightly under target Note: Equally weighted allocations 13

14 Capital is crossing borders Asia Pacific investors European investors North American investors 100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 0% Current region Target region 10% 0% 5,7% 11,2% Current region Target region 10% 0% Current region Target region 14

15 Strong preference for Europe Expected destination for investment in 2016 Europe United States Other Asia Pacific Americas ex US from investors and fund of funds managers Note: Chart shows only investor preferences 15

16 Real Estate Allocation (%) With intentions to further increase allocation 12% Allocation to Real Estate as % of Overall Portfolio 10% 8% 6% 4% 2% 0% Asia Pacific Investors European Investors North American Investors Current Allocation Target Allocation 2016 All Investors Source: ANREV / INREV / PREA Investment Intentions Survey 2015 weighted allocations 16

17 % of respondents Increase in desire for value added 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Investment style preferences Core Value added Opportunity Value added preferred ahead of core and opportunity 17

18 INRE V GLOBAL REA L ESTATE FUND INDEX Stephen Ryan 18

19 Introducing GREFI Global Real Estate Fund Index (GREFI) Index showing the performance of non-listed real estate funds on a global scale Created by ANREV, INREV and NCREIF Updated 12 weeks after the quarter end GREFI Q update includes 454 funds Returns from

20 2010 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q3 Number of Funds GAV ($ billion) Global growth in non-listed real estate Number of Funds GAV Asia Pacific Europe US Asia Pacific Europe US Source: ANREV / INREV / NCREIF Global Real Estate Fund Index Q

21 Global Real Estate Fund Index 21

22 2010 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q3 Quarterly Total Return Performance is mixed across the regions 6,0% Quarterly Fund Performance 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Asia Pacific Europe US -1,0% -2,0% Source: ANREV / INREV / NCREIF Global Real Estate Fund Index Q

23 Index components 23

24 Questions? 24

25 Contact details 25