David Kivell has been managing director at Perennial Real Estate Investments for less than two months. But he has grand visions.
Kivell, who oversees an investment team of 11 people that manages $1.4 billion in publicly traded or soon to be traded property stocks, wants to bolster funds under management to as much as $6 billion before the end of the decade.
“It comes down to performance,” he says. “I’m happy with the team. Investment processes are intact.”
Kivell wants the funds under management to grow, as it will give the firm access to more investment opportunities as companies seek investors of a significant size.
As an investor, Kivell sees a lot of property supply in Europe where economic fundamentals are shaky.
“Austerity is not great for employment,” he says.
The US economic recovery is anaemic. The Federal Reserve will keep interest rates low while new shopping mall and office supply is scarce.
Asia remains Perennial’s favourite investment region. Hong Kong property companies will benefit from the limited amount of space in the city and the flood of Chinese spending in the city’s stores helping to underpin property rents.
“China is not going away,” says Kivell.
Japan’s property market is captive to an ageing and shrinking population. Singapore real estate may do well, supported by the rapid growth in the countries that surround it: Indonesia, Malaysia and Thailand.
“Australia is not particularly exciting,” says Kivell.