Real estate investment management has seen rapid development in recent years. Many institutional investors have entered this field and managed hundreds of billions of assets. This article summarizes the top 10 global real estate investment managers in 2020 based on data from PERE, a leading real estate investment media. Their total fund size has reached nearly $2000 billion, covering various types of real estate assets globally, including logistics, offices, hotels, retail and residential. Understanding the business focus and strengths of these top players can provide helpful insights for real estate investors.
Blackstone has the Largest Real Estate AUM Exceeding $340 Billion
Blackstone Group established in 1985 is the world’s largest alternative investment management firm, covering private equity, credit, hedge funds and real estate, with total AUM reaching $571 billion by 2019 year end. Specifically in real estate, Blackstone manages over $340 billion through its public REITs and private funds. As of April 2020, it owns 1,168 properties in the U.S., with occupancy rate of 94%. The portfolio consists of 38% apartments, 37% industrial facilities, 6% hotels, and 2% retails.
Brookfield Focuses on Core Retail and Logistics Assets Worth $201 Billion
Founded in 1899 and headquartered in Toronto, Brookfield Asset Management is a leading global alternative asset manager with $549 billion AUM. Real estate constitutes one of its five main business segments – the others being infrastructure, renewable power, private equity and credit. Geographically, Brookfield’s real estate investments span North America, Europe, Middle East and Asia Pacific region. In the U.S., it focuses on core retail and logistics assets, being one of the largest enclosed mall operators in the country.
Starwood Capital Excels in Distressed Turnaround with Great Track Record
Established in 1991, Starwood Capital is dedicated to global real estate and energy infrastructure investments. With equity fund size totaling $60 billion raised since inception, its real estate practice covers acquisition, asset management, hotels and financing services across all major property types worldwide. Starwood Capital has acquired over $100 billion of assets in the past 29 years. It also holds stellar capabilities in turning around distressed assets.
GLP Transforms Into Asia’s Largest Logistics Landlord
GLP is a leading global investment manager and business builder in logistics, real estate, infrastructure and finance. Its assets under management exceeds $89 billion spanning China, Japan, Brazil, Europe, India and the U.S. In 2017, a Chinese consortium privatized GLP with US$11.6 billion, making it essentially an Asia-based logistics REIT. Currently, GLP operates six private real estate/PE funds in China, with AUM reaching $19 billion focusing on modern logistics facilities.
Lone Star Known for Distressed Investments and Asset Turnaround
Established in 1995 and headquartered in Dallas, Lone Star Funds provides services for investment funds specializing in real estate, credit, and equity markets worldwide. It focuses on under-performing assets and turnaround through repositioning. Since inception, Lone Star has raised 17 private equity funds totaling $85 billion capital. Its competitive edges include global footprint, long track record and robust asset management capabilities.
This concludes the top 10 global real estate investment managers in 2020. As we can see, they possess some common strengths – strong capital raising ability, global presence, operating capabilities for turnarounds, expertise in certain niche asset classes. For real estate investors seeking co-investment opportunities, gaining a deeper understanding of their preference and track record will improve the chance of success.