Perennial Australian Property Trust 'on hold' following senior departure
Standard & Poor's Fund Services (S&P) has placed Perennial Australian Property Trust 'on hold' following the departure of managing director and head of Perennial Real Estate Investments (PREI) Stephen Hayes.
Hayes will leave the company in mid-February and has been replaced by former managing director of CBRE Global Real Estate Securities and senior member of Macquarie Funds Management David Kivell.
While S&P stated that Kivell is an experienced listed property investor and portfolio manager, it believes Hayes' departure will be a "material loss", as he was a founder of the PREI business and was instrumental in establishing its domestic and global real estate platform.
Hayes' expertise and ownership interest in the business has underpinned S&P's assessment of the fund in the past, and as a result, Perennial's property trust fund was downgraded from three stars to an 'on hold' rating.
The fund is under review as part of S&P's current Australian Property - Listed sector review, and S&P will meet with Kivell to resolve the on hold rating.
Zenith Investment Partners has also reacted to the departure of Hayes by placing both the Perennial Australian Property Wholesale Trust and Perennial Global Property Wholesale Trust 'under review'. Zenith stated that it will be meeting with Kivell in the coming days to discuss the departure, the appointment and procedure going forward.
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