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Views of 2009: Samm Miller and Kenneth Picache

Interviewed at the PERE Breakfast Club: ULI 2009, Sharon Ann M. Miller, managing director of Rockwood Capital, and Apollo Global Real Estate principal Kenneth Picache, reflect on a year of uncertainty.

If there was one word to sum up the lessons learned from 2009 it has to be communication. Some GPs didn’t do enough of it while many LPs wanted more of it.

As PERE gathered 16 professionals for a special breakfast on the fringes of the annual fall Urban Land Institute conference in San Francisco in November, no-one disagreed with the contention that communication would be crucial in 2010, and the years beyond.

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 two edited highlights from an article that appeared in the Dec/Jan issue of PERE magazine. Click here to view, subscribers only.

Sharon Ann M. “Samm” Miller, Managing Director,
Rockwood Capital

“True opportunities”: Out of crisis comes opportunity, and as GPs and LPs work their way through the Miller
There are always two sides of the coin and for Miller, even established GPs with dry powder in their arsenals face challenges beside merely deploying their capital. “It’s not just about going out and finding the right transactions to spend the dry powder on; it’s also about proactively managing your existing assets by focusing on optimising value and preserving capital.”

Kenneth Picache, Principal,
Apollo Global Real Estate

When GPs are judged on how they managed the current real estate downturn in future, how they communicated with their investors will be a key criterion. Picache says: “GPs need to improve communication and allow their LPs the opportunity to discuss current market trends and the types of opportunities that they are participating in. It comes down to keeping LPs informed and maximising transparency.”