Global Real Estate Fund Manager Report 2010 Note to the survey All data is at 31 12 09 unless otherwise stated Exchange

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Global Real Estate Fund Manager Report 2010 Note to the survey All data is at 31 12 09 unless otherwise stated Exchange Powered By Docstoc
					 Global Real Estate Fund Manager
              Report



                                                2010



Note to the survey
All data is at 31/12/09 unless otherwise stated
Exchange rates used at 31/12/09 unless otherwise stated
           The Feri Property Funds Research and Institutional Real Estate, Inc.
                     Global Real Estate Fund Managers’ report 2010
This is the fourth global fund manager survey conducted by Feri Property Funds Research, the UK branch of
Feri EuroRating Services AG and the second in conjunction with Institutional Real Estate, Inc.

139 fund managers took part in the survey, accounting for €950.4 billion real estate assets under management.
In spite of the current global economic situation, this represents a 22% increase in the number of managers
taking part, and an 8% increase in total real estate assets under management. Of the 83 managers who took
part in both the 2009 and 2010 surveys, 53% reported a decline in their assets under management.



                                                               Total global assets under
           Number of respondents                                  management (€bn)
  160                                                 1,200
  140                                                 1,000
  120
  100                                                   800
   80                                                   600
   60                                                   400
   40
   20                                                   200
    0                                                     0




                                    Respondents by manager domicile
                     80
                     70
                     60
                     50
                                                                                     2007
                     40
                                                                                     2008
                     30
                                                                                     2009
                     20
                                                                                     2010
                     10
                      0
                           Europe      North    Australasia   Asia      Other
                                      America



The geographical breakdown of respondents depicts an encouraging trend of the global real estate fund
manager survey reaching more fund managers throughout the globe.
   Global real estate assets under management
                                                                                    North       Latin
                                                                       Europe                             Australasia    Asia      Middle East   Africa
Fund manager                                              Total (€m)               America     America
                                                                        (€m)                                 (€m)        (€m)         (€m)        (€m)
                                                                                    (€m)        (€m)
ING Real Estate Investment Management                      64,352.00   25,091.00   31,347.00                5,178.00    2,736.00
AXA Real Estate Investment Management (AXA Real Estate)    38,400.00   38,226.00                                        174.00
Morgan Stanley Real Estate•                                35,257.53   11,437.21   10,702.68    183.46      2,939.52    9,272.68     717.79       4.19
UBS Global Asset Management˜                               31,520.00   17,292.00   9,087.00                 282.00      4,859.00
RREEF†                                                     31,336.00   15,230.00   14,220.00                            1,886.00
AEW Capital Management                                     29,936.32   16,928.13   12,306.58                            701.61
Pramerica Real Estate Investors                            29,663.10   6,138.60    17,426.70   1,807.30                 4,290.40
Brookfield Asset Management*                               28,530.25   1,116.10    18,136.59   4,045.85     5,231.71
LaSalle Investment Management                              27,832.69   10,358.78   11,440.00                488.29      5,545.61
Hines*#^                                                   24,979.66   2,479.13    18,479.09   1,801.80                 2,219.64
Aberdeen Property Investors Holding AB                     24,590.00   23,606.00    492.00                              492.00
CB Richard Ellis Investors                                 24,205.37   8,859.03    14,579.03                            767.32
Aviva Investors                                            23,348.42   22,505.84    56.40                    82.34      703.84
JP Morgan Asset Management (UK) Limited*                   23,040.44   2,202.20    20,575.26                            262.98
IVG Immobilien AG*¯                                        22,700.00   21,425.00   1,120.00                             155.00
Commerz Real                                               22,340.00   19,900.00   1,260.00                             1,180.00
Tishman Speyer*                                            21,963.41   3,943.31    16,818.20    442.95                  758.95
Deka Immobilien GmbH                                       20,400.00
Invesco Real Estate ‡                                      18,334.00   4,651.34    11,186.79                             60.69
Heitman                                                    16,912.37   2,644.45    14,247.69                             20.23
PRUPIM**                                                   16,379.98   13,924.45    736.55                              1,718.98
The Blackstone Group LP ˚                                  14,224.11
Beacon Capital Partners LLC                                13,044.39   4,255.12    8,789.27
Cohen & Steers Capital Management                          12,295.21   1,771.11    7,382.99     29.30       1,228.41    1,883.42
BlackRock                                                  11,838.31   2,029.21    9,461.02                 348.08
Henderson Global Investors                                 11,626.00   9,608.00    1,483.00                             535.00
Centro Properties Group                                    11,327.43               6,597.29                 4,730.13
Starwood Capital Group                                     11,107.82   3,808.33    7,050.25                             249.24
Westbrook Partners                                         10,824.06
Rockpoint Group LLC                                        10,519.01   1,877.56    6,286.70                             2,354.76
AMP Capital Investors Property                             10,518.32                                       10,518.32
Standard Life Investments                                  9,969.89    9,389.00     339.51       9.02       102.64      129.71
Hermes Real Estate Investment Management Limited           8,910.75    8,459.57     90.24       45.12        78.96      236.87
Brookfield Investment Management                           8,600.93     520.38     6,497.78     14.65       1,101.45    466.67
Schroder Property Investment Management Limited***         8,555.45    8,458.44                                          97.00
F&C REIT Asset Management                                  8,425.73    8,406.56                                          19.18
BNP Paribas Real Estate Investment Management              8,286.00    8,286.00
Legal & General Property                                   7,750.39    7,750.39
Walton Street Capital ˚                                    7,603.42
MGPA*                                                      7,234.20    1,672.26                                         5,561.93
Bouwfonds Real Estate Investment Management*               7,005.00    5,837.00    1,168.00
Scottish Widows Investment Partnership                     6,372.20    6,293.92     78.28
Invista Real Estate Investment Management                  6,022.09    5,936.36                                          85.72
MN Services                                                6,022.00    4,592.00     691.00                              739.00
Patron Capital                                             5,700.00    5,700.00
Rockspring Property Investment Managers                    5,600.00    5,600.00
Threadneedle Property Investments                          5,493.08    5,493.08
Lend Lease Investment Management                           5,228.04     809.10                              3,360.88    933.58       124.48
Secured Capital Japan Co, Ltd                              4,987.56                                                     4,987.56
Valad Property Group                                       4,982.50    4,385.20                             597.30
iii investments                                            4,864.00    4,864.00
Russell Investments                                        4,779.41     491.85     3,170.42     11.65       233.89      871.60
Kennedy Associates Real Estate Council                     4,567.63                4,567.63
European Investors Incorporated***                         4,395.33     766.62     1,946.89                  34.18      1,647.64
AMB Property                                               4,366.04     707.33     2,425.42     227.40                  1,005.88
Grosvenor Fund Management                                  4,060.59    2,599.91     919.27                              529.01
Urdang, Inc                                                3,520.59     48.83      3,348.99                  30.69       92.08
Cushman & Wakefield Investors                              3,443.00    3,443.00
                                                                             North      Latin
                                                                 Europe                          Australasia    Asia      Middle East   Africa
Fund manager                                        Total (€m)              America    America
                                                                  (€m)                              (€m)        (€m)         (€m)        (€m)
                                                                             (€m)       (€m)
Swisscanto Asset Management AG                       3,368.88    3,368.88

Transwestern Investment Company                      3,192.04               3,192.04
Warburg-Henderson Kapitalalanlagegesellschaft für
                                                     3,192.00    3,192.00
Immobilien mbH
GPT Funds Management                                 3,084.55                                      3,084.55
Sentinel Real Estate Corporation*                    3,079.73    292.98     2,759.55                13.95                    13.25
TRECAP Partners LLC                                  3,030.21    380.87     2,649.34
Cordea Savills                                       2,819.86    2,819.86
Sierra Asset Management                              2,700.00    2,700.00
Franklin Templeton Real Estate Advisors              2,663.71    761.25      959.84                 75.69      866.93
Royal London Asset Management                        2,443.69    2,443.69
Legacy Partners Commercial*                          2,364.73               2,364.73
American Realty Advisors                             2,327.83               2,327.83
DTZ Investment Management                            2,321.31    2,321.31
Ignis Asset Management                               2,055.11    2,055.11
Niam AB                                              2,000.00    2,000.00
KTR Capital Partners LP                              1,997.95               1,997.95
Sorgente Group SpA                                   1,956.94    1,886.21    70.73
AEGON Asset Management                               1,949.09    1,949.09
Fidelity                                             1,942.01
Pradera Europe                                       1,836.00    1,836.00
CarVal Investors                                     1,813.66
Internos Real Investors                              1,757.00    1,757.00
Lowe Enterprises Investors, LLC                      1,722.59               1,722.59
Corpus Sireo Investment Management                   1,600.00    1,600.00
Buchanan Street Partners                             1,434.88               1,434.88
Beni Stabili Gestioni S.p.A. SGR                     1,420.00    1,420.00
Quantum Immobilien KAG mbh                           1,400.00    1,400.00
CIT Financial Services Limted*                       1,359.00    1,359.00
Sarofim Realty Advisors Co                           1,325.37               1,325.37
Forum Partners Investment Management LLC             1,241.59    743.81                                        497.78
Unite Group                                          1,154.79    1,154.79
Regalo Capital Co.,Ltd ˝                             1,103.15                                                  1,103.15
IL&FS Investment Managers Limited                     990.54                                                   990.54
Norfin, SGFII SA                                      960.00     960.00
STANLIB                                               893.92                                                                            878.80
Covenant Capital Group LLC                            837.67                 837.67
IDI Investment Management                             837.07                 837.07
Grove International Partners                          804.99     401.80      16.04                             387.15
BPT Asset Management A/S                              782.00     782.00
Northam Realty Advisors Limited                       779.07                 779.07
Doughty Hanson & Co Managers Ltd                      775.00     775.00
LV Asset Management                                   774.90     774.90
Spainvest Property Investors A/S                      770.00     330.00      270.00                            170.00
GoldenTree InSite Partners                            767.32                 306.93     439.46
STAM Europe                                           765.00     765.00
Avanti Investment Advisors                            738.72     738.72
Composition Capital Partners                          728.25     452.72                                        275.54
Sveafastigheter                                       633.77     633.77
AFIAA Investment AG                                   619.87     361.82      167.77                 90.29
Skandia Investment Management Limited (SIML)          610.89     433.81      76.25       0.42       25.94       70.72
Parmenter Realty Partners                             592.93                 592.93
MayfieldGentry Realty Advisors                        583.16                 583.16
Knight Frank Investors                                559.46     559.46
FundBox SGFII, SA                                     520.00     520.00
Palmer Capital                                        501.93     501.93
Kotak Investment Advisors                             480.27                                                   480.27
Nordic Real Estate Partners ApS                       443.45     443.45
Tremont Realty Capital, LLC                           377.24                 377.24
Presima Inc.                                          375.94
                                                                                      North          Latin
                                                                      Europe                                       Australasia       Asia       Middle East      Africa
Fund manager                                          Total (€m)                     America        America
                                                                       (€m)                                           (€m)           (€m)          (€m)           (€m)
                                                                                      (€m)           (€m)
Imorendimento                                           366.00         366.00

Rynda Property Investors LLP                            356.00         356.00
First Property Asset Management                         349.66         349.66
Macarthur Cook Fund Management Limited                  346.67                                                       300.61          46.06
AVP Advisors                                            306.93                        306.93
Equity Estate BV                                        271.20         271.20
Wrightwood Capital                                      224.61                       1,534.63
Strategia Investment Company                            222.52         140.21          45.34          2.09                           29.30           5.58
Capital Dynamics                                        209.27         52.32          122.07                                         34.88
Ferrell Asset Management                                206.72                                                                       206.72
Altan Capital                                           200.00
St Hilliers Funds Management Ltd*                       186.72                                                       186.72
4IP Management AG                                       180.00         160.00          10.00                          10.00
Mountgrange Investment Management                       154.08         154.08
evolve Fund Services Limited                            146.63         146.63
Hayden Properties LLC                                   139.51                        139.51
FIL Limited                                             75.00          75.00
NIBC Investment Management NV                           61.10          61.10
P&G Alternative SGR, Spa                                50.00          50.00
Investment Solutions Limited                            23.91          23.91
MSS Real Estate LLP                                     22.56          22.56
Arbuthnot Real Estate Investment Management

Total                                                 950,352        450,923        324,318          9,060           40,354         65,389          861           882

   NB The sum of the regional AuM does not equal the total AuM due to some respondents not providing a breakdown of assets
   * Difference between AuM and total of separate account mandates and vehicles managed are non-fund assets
   ** Prudential Property Investment Managers Limited. PRUPIM is an indirect subsidiary of Prudential plc, incorporated in the United Kingdom and not affiliated in
   any manner with Prudential Financial Inc, whose principal place of business is in the United States of America
   *** Includes crossholdings
   ˚GAV includes equity + fund’s share of debt + unfunded commitments
   ‡ Total AuM includes global REITs and are not included in regional breakdown
   # Asia includes assets held in Russia, Poland & India
   ^ Difference in separate accounts and vehicle GAV are down to an error in 2009 reporting
   † Last year's figures included infrastructure and private equity assets that no longer form part of RREEF's AuM
   ˜ Balance of assets are held in global funds
   ¯ Change in total AuM due to reclassification of business
   • Excludes real estate related public equity securities & mutual funds
    Difference in regional breakdown & total AuM are assets held in Europe, North America, Australasia & Asia
   ˝ figures as of March 31st 2010
        Geographical distribution of assets                      Total assets under management by fund
                      (€bn)                                                              (
                                                                          manger domicle (€bn)

                                         Europe
                                                                                                    Europe
                                         North America
                                         Latin America                                              North America

                                         Australasia                                                Australasia

                                         Asia                                                       Asia
                                         Unspecified




      Geographical distribution of assets                       Assets by fund manager domicile
                    (€bn)                                                     €bn)
                                                                             (€
70%                                                       70%
60%                                                       60%
                                                                                                             2006
50%                                                2006   50%
                                                                                                             2007
40%                                                2007   40%
                                                                                                             2008
30%                                                2008   30%
                                                          20%                                                2009
20%                                                2009
10%                                                       10%
0%                                                         0%
        Europe    North    Australasia   Asia                       Europe     North America   Australasia
                 America




                  year
  In the year-on-year analysis of the geographical distribution of real estate assets, there is a more marked
  decline in the value of European assets compared to those in other regions. The decline in assets of European
                                        have
  - especially UK - managers seems to have been worse than that for managers domiciled in North America and
  Australia.
Growth in assets under management index:




             Manager domicile           2006            2007            2008             2009
             UK                         100            96.44            62.63            59.66
             North America              100            125.69           103.04          116.71
             Europe (ex UK)             100            119.52           117.41          113.00
             Europe (inc UK)            100            107.19           88.15            84.51




The index constituents are fund managers that have taken part in all four of the surveys and reflect changes
in assets in local currency.

North American fund managers are the only managers to have experienced a growth in total assets under
management with an increase of 13%. European and UK fund managers experienced a decline in assets
under management with -3.76% and -4.75% respectively. The UK is the only region where assets under
management are lower than those reported in the first survey in 2006. This reflects the state of the direct
property market, where the UK has seen a greater decline in values compared to North America and
Continental Europe.


                           Change in AuM by manager domicile
       Index points
                        North America          Europe (ex UK)      Europe (inc UK)       UK
       140


       120


       100


        80


        60


        40


        20
Discretionary segregated mandates under management

                                                          Total mandates      Europe     North        Latin      Australasia              Middle    Africa   Total number
Fund manager                                                                                                                   Asia €m
                                                                €m              €m     America €m   America €m      €m                    East €m    €m      of mandates

ING Real Estate Investment Management                     18,358.00        5,795.00     12,139.00       -             -        424.00        -        -          82

AXA Real Estate Investment Management (AXA Real Estate)   17,554.00        17,407.00        -           -             -        147.00        -        -           7

AEW Capital Management                                    15,089.22        9,494.78     5,594.44        -             -           -          -        -          46

LaSalle Investment Management                             14,404.64        5,301.46     5,929.27        -          906.83      1,953.17   313.90      -          92

Aviva Investors                                           11,017.74        10,924.13     29.33          -          64.29          -          -        -          58

PRUPIM*                                                   10,976.01        10,976.01        -           -             -           -          -        -          10

Aberdeen Property Investors Holding AB                     7,362.00        7,362.00         -           -             -           -          -        -          40

Hermes Real Estate Investment Management Limited           7,331.63        7,331.63         -           -             -           -          -        -           2

Cohen & Steers Capital Management                          7,286.72        1,036.58     3,009.28        -          417.84      2,823.03      -        -          74

F&C REIT Asset Management                                  6,847.74        6,828.57         -           -             -         19.18        -        -          44

CB Richard Ellis Investors                                 6,647.06        5,217.76      634.78         -          563.63      230.89        -        -          91

RREEF†                                                     6,059.00         725.00      4,920.00        -             -        414.00        -        -          30

MN Services                                                5,902.00        5,902.00         -           -             -           -          -        -           7

Invesco Real Estate                                        5,600.72         172.30      5,428.42        -             -           -          -        -          50

Scottish Widows Investment Partnership                     5,323.89        5,323.89         -           -             -           -          -        -           4

Brookfield Investment Management                           5,131.96         218.34      4,435.79        -          477.83         -          -        -          64

Legal & General Property                                   4,745.26        4,745.26         -           -             -           -          -        -           4

BlackRock                                                  4,008.88            -        4,008.88        -             -           -          -        -          11

UBS Global Asset Management                                3,774.00        1,722.00     2,052.00        -             -           -          -        -          17

Invista Real Estate Investment Management                  3,639.87        3,639.87         -           -             -           -          -        -          11

European Investors Incorporated                            3,355.27        1,855.51     1,440.46        -          59.29          -          -        -          74

Threadneedle Property Investments                          3,197.72        3,197.72         -           -             -           -          -        -           4

Heitman                                                    2,746.30         190.43      2,106.63        -             -        449.23        -        -          39

Pramerica Real Estate Investors                            2,699.80        1,074.90     1,624.90        -             -           -          -        -           6

Urdang Inc                                                 2,548.19            -        2,370.31        -          55.80       122.07        -        -          39

Royal London Asset Management                              2,244.27        2,244.27         -           -             -           -          -        -           3

Hines^                                                     1,590.44            -        1,590.44        -             -           -          -        -           7

Secured Capital Japan Co, Ltd                              1,522.78            -            -           -             -        1,522.78      -        -          12

Franklin Templeton Real Estate Advisors                    1,383.75         153.46       104.63         -         1,115.61      10.04        -        -          11

Schroder Property Investment Management Limited            1,274.58        1,274.58         -           -             -           -          -        -          26

AMP Capital Investors Property                             1,244.77            -            -           -         1,244.77        -          -        -           4

American Realty Advisors                                   1,121.61            -        1,121.61        -             -           -          -        -          19

Henderson Global Investors                                 1,097.00         769.00       328.00         -             -           -          -        -          23

BNP Paribas Real Estate Investment Management              926.00           926.00          -           -             -           -          -        -           2

Quantum Immobilien KAG mbh                                 916.00           916.00          -           -             -           -          -        -          11

Grosvenor Fund Management                                  843.70              -         843.70         -             -           -          -        -           8

DTZ Investment Management                                  833.55           833.55          -           -             -           -          -        -           9

Buchanan Street Partners                                   754.06              -         754.06         -             -           -          -        -           1

Ignis Asset Management                                     632.78           632.78          -           -             -           -          -        -           5

Kennedy Associates Real Estate Council                     586.23              -         586.23         -             -           -          -        -           4

Fidelity                                                   578.28              -         565.02         -             -           -          -      13.25         6

LV Asset Management                                        575.25           575.25          -           -             -           -          -        -           3

Cushman & Wakefield Investors                              554.00           554.00          -           -             -           -          -        -           8

Russell Investments                                        507.13           84.20        325.76        0.14           -         97.03        -        -           5

Standard Life Investments                                  504.19           504.19          -           -             -           -          -        -           2

Lowe Enterprises Investors LLC                             488.78              -         488.78         -             -           -          -        -           1

Rockspring Property Investment Managers                    456.40           456.40          -           -             -           -          -        -           2

JP Morgan Asset Management (UK) Limited                    412.96              -         412.96         -             -           -          -        -           2

Presima Inc                                                375.94              -         375.94         -             -           -          -        -          21

Nordic Real Estate Partners ApS                            314.45           314.45          -           -             -           -          -        -           2

First Property Asset Management                            310.18           310.18          -           -             -           -          -        -           1

Cordea Savills                                             288.75           288.75          -           -             -           -          -        -           1

Sarofim Realty Advisors Co                                 258.10              -         258.10         -             -           -          -        -           -

Transwestern Investment Company                            182.76              -         182.76         -             -           -          -        -           1

Lend Lease Investment Management                           124.48              -            -           -             -           -       124.48      -           -

Tremont Realty Capital LLC                                 109.66              -         109.66         -             -           -          -        -           1

Macarthur Cook Fund Management Limited                      89.62              -            -           -          43.57        46.06        -        -           3

MayfieldGentry Realty Advisors                              76.73              -         76.73          -             -           -          -        -           2
                                                      Total
                                                                                  North           Latin      Australasia                Middle    Africa   Total number
Fund manager                                         mandates     Europe €m                                                  Asia €m
                                                                                America €m      America €m      €m                      East €m    €m      of mandates
                                                       €m

evolve Fund Services Limited                           65.55         65.55                                                                                      1

Northam Realty Advisors Limited                        51.67           -           51.67            -             -             -          -        -           1

STAM Europe                                            50.00         50.00           -              -             -             -          -        -           2

Ferrell Asset Management                               36.77           -             -              -             -           36.77        -        -           2

Strategia Investment Company                           31.39         9.77          11.86           2.79           -            6.98        -        -           4

Total                                                204,957.62     127,339      63,911.42         2.93       4,949.47       8,302.23   438.38    13.25       1,121


                                                                                                                           Un
* Prudential Property Investment Managers Limited. PRUPIM is an indirect subsidiary of Prudential plc, incorporated in the United Kingdom and not affiliated in
any manner with Prudential Financial Inc, whose principal place of business is in the United States of America
^ Difference in separate accounts and vehicle GAV are down to an error in 2009 reporting
† RREEF has changed its classification of separate accounts meaning fewer funds reported as separate accounts in this year’s survey


 iscretionary
Discretionary mandates are defined as accounts where the manager has the authority to execute investments
on behalf of clients.

     alue
The value of discretionary mandates has fallen from €227.7bn to €205bn despite an increase in the total
                                                                                     2009.
number of mandates reported from 1,035 in December 2008 to 1,121 December 2009 The largest investor
domicile is still Europe, which represents nearly two thirds of the total value of mandates with €127bn. North
                                                                                   €63bn.
American mandates are the second largest domicile of investor mandates with €63bn The Asian and
Australasian domiciled mandates are relatively small in comparison with a combined total of €13.2bn.

                               €bn        Discretionary mandates by regional domicile of
                                                        investor 2006-2009
                                250

                                200                                                                                        2006
                                                                                                                           2007
                                150                                                                                        2008
                                                                                                                           2009
                                100

                                  50

                                  0
                                       Europe   North America Australasia                Asia             Other



                                           Value of discretionary account mandates by
                                                regional domicile of investor 2009

                                                                                                                      Europe

                                                                                                                      North America

                                                                                                                      Australasia

                                                                                                                      Asia

                                                                                                                      Other
Advisory segregated mandates under management
                                                           Total
                                                                                     North         Latin       Australasia             Middle     Africa    Total number
Fund manager                                              mandates    Europe €m                                              Asia €m
                                                                                   America €m    America €m       €m                   East €m     €m       of mandates
                                                            €m

AXA Real Estate Investment Management (AXA Real Estate)   8,255.00     6,756.00                                                        1,499.00                    5
Heitman                                                   8,193.55                   8,169.14                                 24.41                               14
CB Richard Ellis Investors                                7,475.76      35.87         467.39                     233.68                2,283.82                   10
Invesco Real Estate                                       4,481.13     2,681.42      1,799.78                                                                     10
JP Morgan Asset Management (UK) Limited                   4,332.55                   4,332.55                                                                      8
AEW Capital Management                                    4,179.86                   4,179.86                                                                      8
Aberdeen Property Investors Holding AB                    3,128.00     3,128.00                                                                                   12
Cushman & Wakefield Investors                             2,889.00     2,889.00                                                                                   12
LaSalle Investment Management                              265.73      418.54        1,325.37                                           96.83                     10
AMP Capital Investors Property                             184.92                                                184.92                                            6
ING Real Estate Investment Management                     1,546.00      48.00         824.00                                 242.00                                9
DTZ Investment Management                                 1,434.74     1,434.74                                                                                    3
Sentinel Real Estate Corporation                           17.98                      17.98                                                                        8
Internos Real Investors                                    959.00      959.00                                                                                      2
PRUPIM*                                                    844.83      844.83                                                                                      2
Sarofim Realty Advisors Co                                 659.20                     659.20                                                                       -
Warburg-Henderson Kapitalalanlagegesellschaft für
                                                           638.00      638.00
Immobilien mbH                                                                                                                                                     3
Knight Frank Investors                                     536.98      536.98                                                                                      4
Invista Real Estate Investment Management                  55.32        55.32                                                                                      1
Pradera Europe                                             48.00                                                                        48.00                      1
F&C REIT Asset Management                                  44.93        44.93                                                                                      3
TRECAP Partners LLC                                        356.24       88.12         268.14                                                                       2
MayfieldGentry Realty Advisors                             351.58                     351.58                                                                       2
Kennedy Associates Real Estate Council                     337.13                     337.13                                                                       5
Rockspring Property Investment Managers                    317.70      317.70                                                                                      1
Tremont Realty Capital LLC                                 267.58                     267.58                                                                       3
Standard Life Investments                                  239.12      239.12                                                                                      1
Northam Realty Advisors Limited                            231.92                     231.92                                                                       5
Covenant Capital Group LLC                                 23.96                      23.96                                                                        1
Grosvenor Fund Management                                  19.62        19.62                                                                                      1
Norfin, SGFII SA                                           183.00      183.00                                                                                      1
Ferrell Asset Management                                   169.94                                                            169.94                                2
Cordea Savills                                             163.55      163.55                                                                                      1
Lowe Enterprises Investors LLC                             137.84                     137.84                                                                       1
Nordic Real Estate Partners ApS                            129.46       99.44         29.56                                                                        2
LV Asset Management                                        112.79      112.79                                                                                      1
Strategia Investment Company                               74.64        13.95         35.58         0.70                      23.20      1.40                      8
AVP Advisors                                               27.92                      27.92                                                                        1
First Property Asset Management                            22.56        22.56                                                                                      1
Valad Property Group                                        2.80        2.80                                                                                       1
Palmer Capital                                             14.66        14.66                                                                                      1
BNP Paribas Real Estate Investment Management              12.00        12.00                                                                                      1
Hines^                                                                                                                                                             1
Total                                                     53,366.52   21,759.96      23,486.47      0.70         418.60      459.55    3,929.04      -            174


* Prudential Property Investment Managers Limited. PRUPIM is an indirect subsidiary of Prudential plc, incorporated in the United Kingdom and not affiliated in
any manner with Prudential Financial Inc, whose principal place of business is in the United States of America
^ Difference in separate accounts and vehicle GAV are down to an error in 2009 reporting
† Last year's figures included Infrastructure and Private Equity assets that no longer form part of RREEF's AuM




Advisory mandates are defined as accounts where the manager does not have the authority to execute
investments on behalf of clients without their approval.
In this year’s survey fund managers were asked to provide the details of the advisory segregated mandates
under management. The participants of the survey have a total of €53.3bn in advisory segregated mandates
                                              do
under management with the largest investor domicile being North America with €23.4bn and Europe second
with €21.7bn. The advisory account universe is dominated by these two investor domiciles as combined they
account for 90% of the total value of advisory accounts.

                                                    Value of advisory account mandates by
                                                         regional domicile of investor



                                                                                              Europe
                                                                                              North America
                                                                                              Latin America
                                                                                              Australasia
                                                                                              Asia
                                                                                              Middle East



Collective real estate investment vehicles under management

                                                                           Total value of vehicles     Total number of vehicles
                 Fund manager
                                                                               managed (€m)                    managed
                 ING Real Estate Investment Management                            44,448.00                       70
                 Morgan Stanley Real Estate•                                      35,257.53                       23
                 UBS Global Asset Management                                      34,047.10                       46
                 Pramerica Real Estate Investors                                  26,963.30                       46
                 RREEF†                                                           24,340.00                       33
                 Commerz Real                                                     22,340.00                      102
                 Deka Immobilien GmbH                                             20,400.00                       19
                 JP Morgan Asset Management (UK) Limited                          16,684.27                       7
                 IVG Immobilien AG                                                15,900.00                       92
                 The Blackstone Group L.P ˚                                       14,224.11                       11
                 Aberdeen Property Investors Holding AB                           14,099.90                       38
                 Tishman Speyer                                                   13,296.91                       17
                 Beacon Capital Partners LLC                                      13,044.39                       3
                 AXA Real Estate Investment Management (AXA Real Estate)          12,492.00                       27
                 Aviva Investors                                                  12,331.80                       44
                 Centro Properties Group                                          11,327.43                       38
                 Starwood Capital Group                                           11,107.82                       15
                 Westbrook Partners                                               10,824.06                       8
                 LaSalle Investment Management                                    10,777.32                       27
                 AEW Capital Management                                           10,667.24                       22
                 Henderson Global Investors                                       10,529.00                       24
                 Rockpoint Group LLC                                              10,519.01                       5
                 CB Richard Ellis Investors                                       9,803.52                        21
                 Standard Life Investments                                        9,225.44                        18
                 Hines^                                                           9,131.07                        12
                 Invesco Real Estate                                              8,252.01                        38
                 Schroder Property Investment Management Limited**                7,986.96                        26
                 BlackRock                                                        7,828.73                        10
                 Brookfield Asset Management                                      7,757.58                        5
                 Walton Street Capital ˚                                          7,603.42                        7
                 AMP Capital Investors Property                                   7,498.51                        12
                 BNP Paribas Real Estate Investment Management                    7,312.00                        47
                 Bouwfonds Real Estate Investment Management                      6,500.00                        41
                 Heitman                                                          5,845.56                        25
                                                                   Total value of vehicles   Total number of vehicles
Fund manager
                                                                       managed (€m)                  managed
Patron Capital                                                            5,700.00                      4
Cohen & Steers Capital Management                                         5,159.86                      16
Lend Lease Investment Management                                          5,103.57                      11
Valad Property Group                                                      4,961.70                      21
iii investments                                                           4,864.00                      11
Rockspring Property Investment Managers                                   4,803.00                      10
MGPA                                                                      4,631.13                      8
PRUPIM*                                                                   4,559.14                      12
AMB Property                                                              4,366.04                      8
Russell Investments                                                       4,272.28                      12
Kennedy Associates Real Estate Council                                    3,644.76                      3
Brookfield Investment Management                                          3,468.97                      12
Secured Capital Japan Co, Ltd                                             3,464.09                      6
Swisscanto Asset Management AG                                            3,271.48                      2
GPT Funds Management                                                      3,084.55                      2
Grosvenor Fund Management                                                 3,026.27                      14
Transwestern Investment Company                                           3,009.28                      6
Legal & General Property                                                  3,005.13                      12
Sierra Asset Management                                                   2,700.00                      2
TRECAP Partners LLC                                                       2,674.03                      10
Warburg-Henderson Kapitalalanlagegesellschaft für Immobilien mbH          2,556.00                      9
Cordea Savills                                                            2,359.66                      15
Threadneedle Property Investments                                         2,296.49                      7
Legacy Partners Commercial                                                2,162.44                      3
Niam AB                                                                   2,000.00                      2
KTR Capital Partners LP                                                   1,997.95                      2
Sorgente Group SpA                                                        1,956.94                      14
AEGON Asset Management                                                    1,949.09                      5
Invista Real Estate Investment Management                                 1,876.90                      11
Corpus Sireo Investment Management                                        1,599.50                      4
Hermes Real Estate Investment Management Limited                          1,563.33                      3
Pradera Europe                                                            1,428.00                      4
Ignis Asset Management                                                    1,422.34                      2
Beni Stabili Gestioni SpA. - SGR                                          1,420.00                      10
Fidelity                                                                  1,363.73                      6
Franklin Templeton Real Estate Advisors                                   1,279.95                      13
Forum Partners Investment Management LLC                                  1,241.59                      5
Sentinel Real Estate Corporation                                          1,217.94                      6
American Realty Advisors                                                  1,206.22                      4
F&C REIT Asset Management                                                 1,173.06                      3
Unite Group                                                               1,154.79                      1
Lowe Enterprises Investors LLC                                            1,095.94                      14
Scottish Widows Investment Partnership                                    1,045.60                      16
European Investors Incorporated**                                         1,040.06                      9
IL&FS Investment Managers Limited                                          990.54                       2
Urdang Inc                                                                 973.10                       6
STANLIB                                                                    893.92                       6
CIT Financial Services Limited                                             867.42                       2
IDI Investment Management                                                  837.07                       9
Grove International Partners                                               804.99                       3
Internos Real Investors                                                    798.00                       5
BPT Asset Management A/S                                                   782.00                       4
Norfin, SGFII SA                                                           776.00                       9
Doughty Hanson & Co Managers Ltd                                           775.00                       2
Spainvest Property Investors A/S                                           770.00                       2
GoldenTree InSite Partners                                                 740.11                       3
Avanti Investment Advisors                                                 738.72                       9
Composition Capital Partners                                               728.25                       4
STAM Europe                                                                715.00                       2
                                                                      Total value of vehicles
                       Fund manager                                                                  Total number of vehicles managed
                                                                          managed (€m)
                       Sveafastigheter                                        633.77                                  2
                       Covenant Capital Group LLC                             633.71                                  6
                       Buchanan Street Partners                               622.22                                  3
                       AFIAA Investment AG                                    619.87                                  1
                       Skandia Investment Management Limited (SIML)           610.89                                  2
                       Parmenter Realty Partners                              592.93                                  3
                       FundBox - SGFII SA                                     520.00                                 13
                       Northam Realty Advisors Limited                        495.48                                  7
                       Palmer Capital                                         487.27                                  6
                       Kotak Investment Advisors                              480.27                                  3
                       Quantum Immobilien KAG mbh                             479.00                                  3
                       Sarofim Realty Advisors Co                             408.07                                  5
                       Imorendimento                                          366.00                                  9
                       Rynda Property Investors LLP                           356.00                                  2
                       AVP Advisors                                           279.02                                  1
                       Equity Estate BV                                       271.10                                  4
                       Macarthur Cook Fund Management Limited                 257.05                                  6
                       Wrightwood Capital                                     224.61                                  3
                       Capital Dynamics                                       209.27                                  3
                       Altan Capital                                          200.00                                  1
                       Royal London Asset Management                          199.42                                  1
                       MayfieldGentry Realty Advisors                         154.86                                  2
                       Mountgrange Investment Management                      154.08                                  1
                       St Hilliers Funds Management Ltd                       150.00                                  1
                       4IP Management AG                                      149.37                                  3
                       Hayden Properties LLC                                  139.51                                  1
                       Strategia Investment Company                           122.77                                  0
                       MN Services                                            120.00                                  1
                       LV Asset Management                                     86.85                                  1
                       evolve Fund Services Limited                            77.83                                  9
                       FIL Limited                                             75.00                                  1
                       NIBC Investment Management NV                           60.80                                  3
                       DTZ Investment Management                               53.01                                  1
                       P&G Alternative SGR SpA                                 50.00                                  1
                       Investment Solutions Limited                            23.91                                  1
                       MSS Real Estate LLP                                     22.56                                  1
                       Knight Frank Investors                                  21.43                                  1
                       First Property Asset Management                         16.92                                  2
                       Hayden Properties LLC                                  139.51                                  1
                       Total                                                631,224.31                              1,512


* Prudential Property Investment Managers Limited. PRUPIM is an indirect subsidiary of Prudential plc, incorporated in the United Kingdom and not affiliated in
any manner with Prudential Financial Inc, whose principal place of business is in the United States of America
** Includes crossholdings
^ Difference in separate accounts and vehicle GAV are down to an error in 2009 reporting
˚GAV includes equity + fund’s share of debt + unfunded commitments
† Last year's figures included Infrastructure and Private Equity assets that no longer form part of RREEF's AuM
• Excludes real estate related public equity securities & mutual funds



This year’s survey saw a substantial increase in the number and value of funds reported by the managers. The
aggregated Gross Asset Value (GAV) of the vehicles was up to €631bn from €546bn with the total number of
vehicles up to 1,512 from 1,290. Significantly, the average fund size had not increased, indicating that fund
values have stabilised but have yet to see meaningful growth.
Vehicles launched in 2009

                                                               Number of vehicles
     Fund manager                                                                   Total target GAV €m
                                                                launched in 2009
     Sorgente Group SpA                                                9                   2,256
     Pramerica Real Estate Investors                                   5                   1,850
     4IP Management AG                                                 4                    30
     Starwood Capital Group                                            4                   9,155
     BNP Paribas Real Estate Investment Management                     3                   628
     BPT Asset Management A/S                                          3                   500
     F&C REIT Asset Management                                         3                     -
     IVG Immobilien AG                                                 3                   680
     AEW Capital Management                                            2                   140
     AXA Real Estate Investment Management (AXA Real Estate)           2                   2,200
     Nordic Real Estate Partners ApS                                   2                   128
     Russell Investments                                               2                    1
     The Blackstone Group LP                                           2                     -
     UBS Global Asset Management                                       2                   737
     AEGON Asset Management                                            1                     -
     AFIAA Investment AG                                               1                   1,011
     American Realty Advisors                                          1                     -
     Aviva Investors                                                   1                   282
     Beni Stabili Gestioni SpA - SGR                                   1                    50
     Brookfield Asset Management                                       1                   3,837
     Capital Dynamics                                                  1                   105
     CB Richard Ellis Investors                                        1                   174
     Commerz Real                                                      1                   800
     Cordea Savills                                                    1                   564
     FundBox - SGFII SA                                                1                    20
     Henderson Global Investors                                        1                   100
     iii investments                                                   1                   1,434
     Invesco Real Estate                                               1                   153
     Niam AB                                                           1                   600
     P&G Alternative SGR Spa                                           1                    50
     Palmer Capital                                                    1                    90
     Pradera Europe                                                    1                   800
     Rockspring Property Investment Managers                           1                   525
     Secured Capital Japan Co, Ltd                                     1                   140
     Spainvest Property Investors A/S                                  1                   1,000
     Threadneedle Property Investments                                 1                   1,128
     Tishman Speyer                                                    1                   279

     Total                                                            69                 31,446
 Planned indirect vehicle launches for 2010

                                                  Number of planned vehicle   Target GAV of new
Fund Manager
                                                      launches 2010             vehicles (€m)
Pramerica Real Estate Investors                              9                    3,803.45
AXA Real Estate Investment Managers                          7                    7,295.12
Aviva Investors                                              4                    2,641.85
F&C REIT Asset Management                                    3                        -
FundBox                                                      3                     170.00
IVG Immobilien                                               3                     800.00
Sorgente                                                     3                    1,778.78
Threadneedle Property Investments                            3                     338.38
Aberdeen Asset Management                                    2                     250.00
AEW Capital Management                                       2                     837.07
Beni Stabili Gestioni                                        2                     400.00
BPT Asset Management                                         2                     350.00
First Property Asset Management Limited                      2                     349.66
Franklin Templeton Real Estate Advisors                      2                     348.78
GoldenTree InSite Partners                                   2                     627.81
Henderson Global Investors                                   2                     650.00
IDI Investment Management                                    2                     697.56
iii-investments                                              2                     800.00
ING Real Estate Investment Management                        2                    1,500.00
Invesco Real Estate                                          2                     906.83
Invista Real Estate Investment Management                    2                        -
Lend Lease Investment Management                             2                        -
MGPA                                                         2                     667.57
NORFIN                                                       2                      50.00
Pradera Europe                                               2                    1,279.02
Scottish Widows Investment Partnership                       2                    1,071.55
Sentinel Real Estate Corporation                             2                     871.95
Standard Life Investments                                    2                     620.37
4IP Management                                               1                     150.00
AEGON Asset Management                                       1                     338.38
Arbuthnot Real Estate Investment Management                  1                        -
Avanti Investment Advisors                                   1                     348.78
AVP Advisors                                                 1                     209.27
BNP Paribas Real Estate Investment Management                1                      60.00
Brookfield Asset Management                                  1                     697.56
Cohen & Steers Capital Management                            1                     174.39
Corpus Sireo Investment Management                           1                     150.00
evolve Fund Services                                         1                     112.79
Forum Partners Investment Management                         1                     697.56
Grosvenor Fund Management                                    1                     451.18
Hyden Properties                                             1                     139.51
Heitman                                                      1                     174.39
JP Morgan Asset Management (UK)                              1                        -
MayfieldGentry Realty Advisors                               1                     558.05
MSS Real Estate                                              1                     902.35
NIAM AB                                                      1                     600.00
NIBC Investment Management                                   1                     300.00
Nordic Real Estate Partners                                  1                     161.26
Parmenter Realty Partners                                    1                    1,046.34
Rockspring Property Investment Managers                      1                      750
Schroder Property Investment Management Limited              1                      500
Secured Capital Japan                                        1                        -
St Hilliers                                                  1                     248.95
STAM Europe                                                  1                      1000
Sveafastigheter                                              1                     975.03
Transwestern Investment Company                              1                     209.27
Tremont Realty Capital                                       1                     209.27
                                                                                    Number of planned vehicle      Target GAV of new
Fund Manager
                                                                                        launches 2010                vehicles (€m)
Valad Property Group                                                                           1                         750.00
Warburg - Henderson Kapitalanlagegesellschaft                                                  1                         300.00
Total                                                                                         106                        41,320


Historical comparison of actual and planned fund launches show that on average fund managers have been launching
                                                                                                            th
fewer funds year-on-year, with this year’s survey having the lowest average launch figure in the history of the survey.
Fund managers appear to be more optimistic about the future of unlisted funds, as this year saw an increase in the
                                 lanned          managers,
average number of funds being planned by fund managers to equal the number planned in 2007.


Actual vehicle launches                                     2006                 2007                    2008                2009
Actual vehicle launches                                     109                  136                      79                   69
Total managers surveyed                                      71                  107                     113                  139
Actual launches per manager                                 1.54                 1.27                    0.69                 0.50


Planned vehicle launches                                    2007                 2008                    2009                2010
Planned vehicle launches                                     77                  106                      72                 106
Total managers surveyed                                      71                  107                     113                 139
Planned launches per manager                                1.08                 0.99                    0.64                0.76



               Planned vehicles 2010 by target sector                                               vehicle
                                                                              Legal type of planned vehicles 2010

 Number                     Target GAV €bn      Number      €bn      Number             Target GAV €bn          Number                 €bn
 45                                                         18       40                                                                  18
 40                                                         16                                                                           16
                                                                     35
 35                                                         14                                                                           14
                                                                     30
 30                                                         12                                                                           12
                                                                     25
 25                                                         10                                                                           10
                                                                     20
 20                                                         8                                                                            8
 15                                                         6        15
                                                                                                                                         6
 10                                                         4        10
                                                                                                                                         4
  5                                                         2         5                                                                  2
  0                                                         -         0                                                                  -




                   Planned vehicles 2010 by target region                              vehicle
                                                                               Planned vehicles 2010 by style

  Number                     Target GAV €bn     Number          €bn

 80                                                             35

 70                                                             30                                                       Core
 60
                                                                25                                                       Core +
 50
                                                                20                                                       Value added
 40
                                                                15
 30                                                                                                                      Opportunistic
                                                                10
 20

 10                                                             5

  0                                                             -
The most popular investment sector for new funds is diversified, with 40 funds aiming to invest €16bn into a diversified
strategy. Of the single sector funds targeting the commercial sectors, office is the most popular target sector with 14 funds
aiming to invest €5.2bn, compared with retail and industrial with five funds investing €3.79bn and four funds investing
€1.61bn respectively.

The most popular legal structure for funds is the Limited Partnership, which accounted for one- third of all funds planned
for 2010.

The mature markets of Europe and North America were the most popular target regions for funds, with Europe having the
highest number of funds (68) and largest pool of investment capital with €28.9bn. In comparison, there are 17 funds with a
target GAV of €6.21bn targeting the remaining markets.

The vehicle styles indicate that the majority of planned funds are adopting a more risk-averse strategy with core/core+
strategies accounting for 56% of the funds, value-added 27% and opportunistic 17%.


Fund manager investment intentions for real estate allocations in 2010

The survey also asks fund managers about their investment intentions for the next year. Fund managers are
asked to state whether they are planning to increase, decrease or maintain their current exposure to different
types of real estate assets. The following charts show the findings alongside last year’s responses.

Direct investment in real estate
                           2009                                                              2010

    100%                                                          100%
     90%                                                           90%
     80%                                                           80%
     70%                                                           70%                                               Increase
                                                 Increase
     60%                                                           60%
                                                 Maintain          50%                                               Maintain
     50%
     40%                                         Decrease          40%                                               Decrease
     30%                                                           30%
     20%                                                           20%
     10%                                                           10%
      0%                                                            0%




                                                              1




1
Unlisted real estate funds
                                                                                          Closed-ended funds 2010
                      Unlisted funds 2009
   100%                                                                    100%
    90%                                                                     90%
    80%                                                                     80%
    70%                                                                     70%
                                                                            60%                                                 Increase
    60%                                                  Increase
                                                                            50%
    50%                                                                                                                         Maintain
                                                         Maintain           40%
    40%
                                                                            30%                                                 Decrease
    30%                                                  Decrease
                                                                            20%
    20%                                                                     10%
    10%                                                                      0%
     0%




                                                                                           Open-ended funds 2010
                                                                           100%
                                                                            90%
                                                                            80%
                                                                            70%
                                                                            60%
                                                                                                                                Increase
                                                                            50%
                                                                            40%                                                 Maintain
                                                                            30%
                                                                            20%                                                 Decrease
                                                                            10%
                                                                             0%




In 2010, for the first time, participants were asked to distinguish between their investment intentions for unlisted closed- and open-
ended funds

Listed real estate funds

                                2009                                                                       2010
  100%                                                                       100%
   90%                                                                        90%
   80%                                                                        80%
   70%                                                                        70%
   60%                                                    Increase            60%                                                        Increase
   50%                                                                        50%
                                                          Maintain                                                                       Maintain
   40%                                                                        40%
   30%                                                    Decrease            30%                                                        Decrease
   20%                                                                        20%
   10%                                                                        10%
    0%                                                                         0%
Real estate investment trusts (REITs)

                       2009                                 2010
100%                                                100%
 90%                                                 90%
 80%                                                 80%
 70%                                                 70%
 60%                                                 60%             Increase
                                        Increase
 50%                                                 50%
                                        Maintain                     Maintain
 40%                                                 40%
 30%                                    Decrease     30%             Decrease
 20%                                                 20%
 10%                                                 10%
  0%                                                  0%




Derivatives

                       2009                                2010
  100%                                             100%
   90%                                              90%
   80%                                              80%
   70%                                              70%
   60%                                  Increase    60%            Increase
   50%                                  Maintain    50%            Maintain
   40%                                              40%
   30%                                  Decrease    30%            Decrease
   20%                                              20%
   10%                                              10%
    0%                                               0%




Debt (CMBS/RMBS)
                        2009                                2010
  100%                                              100%
   90%                                               90%
   80%                                               80%
   70%                                               70%
   60%                                  Increase     60%             Increase
   50%                                               50%             Maintain
                                        Maintain
   40%                                               40%
   30%                                  Decrease     30%             Decrease
   20%                                               20%
   10%                                               10%
    0%                                                0%
In general the mangers’ investment intentions indicate that the preferred markets for investment in 2010 will be
the mature markets. Europe and North America had the highest percentage of fund managers aiming to
increase assets in these regions in all of the various assets. The most popular assets where managers were
looking to increase their exposure were direct and unlisted closed ended funds.

Europe is the most popular location for fund managers to increase their unlisted and direct market exposure,
with North America being the most popular for listed, REITs and debt exposure. The appetite for derivative
exposure appears to have decreased, with the majority of respondents looking to maintain their current
exposure. The number of fund managers looking to increase their allocation to derivatives fell from 2009 to
2010.

Summary

The results of the survey showed a continuation of last year’s trend in declining assets under management with
the UK domiciled fund managers generally being worst affected when compared to North American and
continental European managers. However, the results of the survey indicate that the decline in assets under
management is stabilising with the year-on-year percentage change in average total assets per manager and
average vehicle size significantly reduced when compared to last year’s survey. This improvement is reflected
in the fund managers’ investment intentions for 2010, with an increase in the proportion of managers looking to
increase their direct and indirect assets under management which, in turn, is reflected in the substantial
increase in the new vehicles planned over the next 12 months.
For more information:


               Feri Property Funds Research
6 St Giles Court, Southampton Street, Reading RG1 2QL, UK

Tel: +44 (0) 118 958 5848
Fax: +44 (0)118 958 5849
Email: jf@propertyfundsresearch.com
Web: www.propertyfundsresearch.com

				
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