Sovereign funds continue to build allocations in global real estate
Global sovereign wealth funds (SWF) have been boosting real estate holdings over the past decade and may spend US$185 billion on real estate by 2020, according to the real estate consultant Knight Frank.
SWF assets are likely to reach $15 trillion by 2020 based on a forecast of a compounded annual growth rate of 6.2 per cent, the agency said, citing PwC figures. The $185bn estimation by Knight Frank is based on 5 per cent allocation to real estate and does not factor any possible increase in allocations by SWF.
Arabian Gulf SWFs have become prolific investors in both residential and commercial property in European cities such as Paris and London in recent years.
The Abu Dhabi Investment Authority (Adia), one of the world’s biggest largest wealth funds, invests between 5 to 10 per cent of its assets in real estate, an allocation that has been in place since at least 2009, when public records began. But the fund, which doesn’t disclose its assets under management, has significantly expanded its in-house investment teams in recent years and moved toward a more active approach that favors joint ventures with local partners in global markets, from its previous approach of investing largely through funds and external managers. Link
SWF assets are likely to reach $15 trillion by 2020 based on a forecast of a compounded annual growth rate of 6.2 per cent, the agency said, citing PwC figures. The $185bn estimation by Knight Frank is based on 5 per cent allocation to real estate and does not factor any possible increase in allocations by SWF.
Arabian Gulf SWFs have become prolific investors in both residential and commercial property in European cities such as Paris and London in recent years.
The Abu Dhabi Investment Authority (Adia), one of the world’s biggest largest wealth funds, invests between 5 to 10 per cent of its assets in real estate, an allocation that has been in place since at least 2009, when public records began. But the fund, which doesn’t disclose its assets under management, has significantly expanded its in-house investment teams in recent years and moved toward a more active approach that favors joint ventures with local partners in global markets, from its previous approach of investing largely through funds and external managers. Link
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