At PPI we believe successful direct property investment requires a long-term investment horizon and a focus on value creation through active property and financial management.
PPI's investment philosophy is quite simple...
- We only buy properties we will still want to own in 20-30 years time. Wealth generation in the property market doesn't happen overnight and as the transaction costs involved in buying and selling property are so high we pay particular attention to the long term prospects of the assets we buy and then actively manage those assets to ensure they reach their full potential. In keeping with this philosophy we don't expect overnight returns, and we don't "churn" properties;
- We only buy property into which we are happy to put a significant amount of our own money. Much of the success of PPI can be attributed to this "co-investment" philosophy - we work harder at every stage of the investment process as we have a significant amount of our own "skin in the game". Unlike other property fund managers, at PPI we are more concerned with the quality of the assets under our management than their size. Evidence of this is the fact PPI has always syndicated a property with Harry and senior management taking significant personal interests and to this day Harry is still the largest investor across all PPI syndicates.
These two core investment philosophies have served both PPI and our clients well over the last 25 years, and it is for this reason PPI chose not to acquire any commercial property during most of 2005, 2006, 2007 and 2008 fearing that the market was overheated (a view that history has since vindicated). During this time, PPI focussed on strengthening the position of many of our existing assets and undertaking several substantial redevelopments.
Our decision not to acquire property between 2005 and mid-2008 (prior to the economic downturn) placed PPI in a strong position to re-enter the commercial property market in late 2008 and 2009. Since then PPI has been able to acquire 3 quality retail property assets worth approximately $180 million from institutions and listed property trusts.