Commercial property fallen angels, PE update, Bullock's hawkish ways | 29 Nov 2023

Wealth of Experience

Season 2, Episode 13
After a glorious decade, private assets are being tested by a higher interest rate environment. Commercial property is at the forefront of that, and Steven Bennett, CEO of Direct Property at Charter Hall, joins us to talk through the challenges that he's facing as well as the opportunities going forward.

Another area of private assets being stress tested is private equity. Though, Rainer Ender is the Global Head of Private Equity at Schroders, thinks media coverage on this has been over-hyped. There are some segments such as late-stage venture capital and leveraged buyouts where deals are drying up, but other segments are holding up better.
Regular guest, Peter Warnes from Morningstar's Your Money Weekly, gives us an insight into why the new RBA Governor seems to be more wary of inflation than her predecessor, and what it means for interest rates and the economy.

Chapters

1. Commercial property fallen angels, PE update, Bullock's hawkish ways | 29 Nov 2023 (00:00:00)

2. Peter Warnes (00:02:23)

3. Peter Warnes - Michelle Bullock's hawkish start (00:02:30)

4. Peter Warnes - RBA changes to communications strategy (00:05:19)

5. Peter Warnes - can't assume another rate hike coming (00:06:38)

6. Peter Warnes - low business investment an economic concern (00:08:16)

7. Peter Warnes - causes for poor business investment (00:10:41)

8. Peter Warnes - housing crowded out other investments? (00:12:15)

9. Steven Bennett - CEO of Direct Property at Charter Hall (00:15:39)

10. Steven Bennett - his role at Charter Hall (00:16:04)

11. Steven Bennett - how his unlisted funds are split (00:16:39)

12. Steven Bennett - recap of tough year in property (00:17:21)

13. Steven Bennett - on scrutiny of cap rates for the industry (00:19:52)

14. Steven Bennett - on low transaction volumes (00:21:17)

15. Steven Bennett - disconnect between public and private property values (00:22:16)

16. Steven Bennett - property's challenges (00:24:07)

17. Steven Bennett - long-term opportunities (00:24:50)

18. Steven Bennett - bullish industrial property prospects (00:25:58)

19. Steven Bennett - 2-tiered office market (00:27:08)

20. Steven Bennett - retail, little evidence of consumer slowdown (00:28:05)

21. Steven Bennett - bank financing ok for property (00:28:38)

22. Steven Bennett - global property trends (00:29:54)

23. Rainer Ender - Global Head of Private Equity at Schroders (00:33:37)

24. Rainer Ender - what brings him to Australia (00:34:15)

25. Rainer Ender - defines private equity (00:34:57)

26. Rainer Ender - tougher 2023 (00:36:15)

27. Rainer Ender - controversy of private equity valuations (00:38:51)

28. Rainer Ender - secondary PE market growth (00:42:14)

29. Rainer Ender - overview of Schroders' funds (00:44:58)

30. Rainer Ender - challenges for PE going forwards (00:47:59)

31. Rainer Ender - investment areas he likes (00:49:28)

32. Rainer Ender - opportunity with family owned businesses (00:53:33)