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Views of 2009: John Kukral and Nori Gerardo Lietz

Interviewed at the PERE Breakfast Club: ULI 2009, John Kukral, president of Northwood Investors, and Partners Group’s chief strategist for private real estate, Nori Gerardo Lietz, argue surprises are in store for GPs in 2010.

There could lots of surprise in store for private equity real estate professionals in 2010.

According to two senior professionals, who took part in a special breakfast we hosted on the fringes of the annual fall Urban Land Institute conference in San Francisco in November, those surprises could be related to a GP’s ability to raise future discretionary capital and the scale of the opportunity seen in the US.

Over the course of 10 days, PERE is presenting a summary of those 16 professionals’ perspectives on 2009, and their thoughts for 2010. The following are edited highlights from an article that appeared in the Dec/Jan issue of PERE magazine. Click here to view, subscribers only.

John Kukral, President,
Northwood Investors

Over the course of his career, Kukral has been US-centric, but as the eyes of the world turn once again to opportunities in North America, he warns the scale may not be gigantic or that quick to materialise.
“There are currently a lot of people chasing very few assets and contrary to popular opinion the commercial real estate markets are extremely liquid”. 

Nori Gerardo Lietz, Chief Strategist Private Real Estate,
Partners Group

Limited partners are rarely confrontational, but for Gerardo Lietz 2010 will mark a year in which LPs “vote with their capital. I believe many GPs will be surprised that they cannot re-up with existing LPs as easily as they anticipated. Investors want more control, and the industry will find that larger plan sponsors will eschew the commingled fund format, as they have the capability to run separate accounts.