Hong Kong-based ESR Group has been named as the largest real estate fund manager in Asia Pacific, following the release of an industry survey.
The Fund Manager Survey 2023 published by the Asian association for investors in non-listed real estate vehicles (Anrev), along with its international counterpart Inrev and the US-based National council for real estate investment fiduciaries, found that global assets under management (AuM) for real estate for the 116 respondents in the survey exceeded US$4.1 trillion
The findings reflect a wider trend that has seen a number of pan-Asian industrial and logistics players emerge as leading participants in the global real estate market.
While the survey shows that the average assets under management of firms globally has increased by 10% since last year at US$35.7 billion, the increase has been more pronounced in Asia Pacific.
The survey also shows the extent of consolidation in the sector and cites ESR's merger and acquisition growth as a major factor in its position at the top of Apac real estate fund managers’ AuM levels, significantly ahead of its nearest rival, GLP Capital Partners.
ESR completed the $5.2 billion acquisition of Singapore-based ARA Asset Management in January 2022.
The survey also shows the dominance of pan-Asian industrial and logistics-focused players, that account for three of the top four firms in the region.
"The ongoing consolidation in the non-listed real estate industry is evident as the concentration of AuM in larger fund managers persists in 2022,” said Amélie Delaunay, senior director of research and professional standards at Anrev.
“It is interesting to observe that non-listed real estate AUM in APAC is dominated by single sector industrial and logistics investment managers, ESR, GLP and Goodman, which is a shift from five years ago where more diversified managers figured in the top three."
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