Abu Dhabi fund named world's biggest real estate investor

Abu Dhabi Investment Authority said to have property-related assets exceeding $62bn, making up 7.5% of total assets under management
By Sam Bridge
Wed 06 Jun 2018 02:11 PM

Abu Dhabi Investment Authority (ADIA) has been named the world's biggest real estate investor with assets exceeding $62 billion.

The sovereign wealth fund topped a list of the world's top 10 property investors in a research note published by Indosuez Wealth Management.

The report said real estate investments represented 7.5 percent of ADIA's total assets under management (AuM).

ADIA beat the likes of Netherlands fund ABP ($48.1 billion) and Germany's Allianz ($41.8 billion), according to Indosuez which cited figures from IPE Real Assets.

In 2017, ADIA posted higher annualised rates of return, which rose to 7 percent compared to 6.9 person in 2016. The fund’s 20 year annualized rate of return, for its part, went up to 6.5 percent in 2017, compared to 6.2 percent the year before.

Despite ADIA's performance, the list is dominated by European and North American pension fund managers which make up just under 45 percent of the top 10 real estate AuM followed by insurance companies in Europe (29.5 percent) and two sovereign wealth funds from the Middle East (25.9 percent).

Victoria Scalogne, senior real estate analyst, said: "Not only have large institutional real estate investors become more ‘global’ in origin, they are investing more ‘globally’, as can been seen by the amount of cross-border investment.
"Institutional investors have also been increasing their portfolio allocation to alternative investments including real estate. Real estate assets have helped provide a steady and diversified income stream to institutional portfolios as well as providing yield in the context of a low interest rate environment."

She added: "SWFs from the Middle East have helped diversify their economies away from oil and invest in a wide range of non-oil related assets. Emerging market institutional investors have become more prominent real estate investors in the global arena in recent years helped by a growing middle class (and wealth) in large swathes of the emerging world."

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Last Updated: Wed 06 Jun 2018 02:13 PM GST

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