Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
Goodman Group biggest Aussie manager in unlisted real estate
The Goodman Group has topped the size rankings in ANREV’s latest survey of fund managers operating in the Australian unlisted property space, with $52 billion under management. Charter Hall came second, with $38.9 billion, and Lend Lease third, with $36.5 billion.
ANREV is a not-for-profit research firm which is part of a global network including ‘INREV’ and ‘NCRIEF’. It is based in Hong Kong, under Amelie Delaunay, the director of research and professional standards. The results of the latest annual study, published last week (June 15), which lists the top 10 Australian managers, show a total of unlisted property assets of $316 billion, which was up 4.7 per cent on the previous year.
Goodman Group, a global company with properties in 15 countries, was also leader of the pack in last year’s survey. Charter Hall, however, jumped from fifth spot to second, while Lend Lease remained steady. But, for the Asia Pacific region, Charter Hall was ranked fifth and Goodman Group sixth. A lot of both Carter Hall’s and Lend Lease’s property investments are listed, which excludes them from the survey.
Delaunay said: “The rise in Australian asset managers’ real estate AUM in 2019 reflects positivity among the investment community about Australian fund managers’ performance in the local real estate market and the success of some managers’ foray into foreign markets. Domestically, Australian real estate enjoyed strong fundamentals in 2019 in sectors such as office and logistics and benefitted from renewed optimism about Australia’s economic outlook, which materialised over the course of the year.
“COVID-19, however, has created significant uncertainty in the real estate market, which if prolonged could risk a major devaluation of assets. While the impact on the real estate industry in Australia is yet to be fully seen, investors globally have consistently ranked the country their top investment destination over the years on the back of strong fundamentals, making it an important component in long-term investors’ portfolio and source of diversification.”
The top 10 Australian unlisted (direct) property investors, according to the survey, are: Goodman Group, Charter Hall, Lend Lease, Dexus, AMP Capital, Vicinity Centres, GPT Group, ISPT, QIC and Investa.
ANREV is the Asian association for investors in non-listed real estate vehicles. ANREV’s agenda is focused on improving transparency and accessibility of market information, promoting professionalism and best practices, sharing and
spreading knowledge. ANREV is a sister organisation to INREV, in Europe, and works with a
number of other associations across Asia Pacific and North America on research and professional standards. INREV, the European Association for investors in non-listed real estate vehicles, was launched in 2003 as a forum
for investors and other participants in the non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.8 trillion (A$4.58 trillion). INREV has 464 members which include 86 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, as well as banks and advisors across Europe and elsewhere. It is based in Amsterdam.
NCREIF is based in Chicago (the National Council of Real Estate Investment Fiduciaries). The membership includes investment managers, plan sponsors, academics, consultants, appraisers, CPAs and other service providers who have a
significant involvement in institutional real estate investments.
– G.B
