One of New Zealand’s strongest performing property funds to raise up o $68 million to acquire four commercial properties
Today, PMG Property Funds Management Ltd (PMG) opens an opportunity to invest in one of New Zealand’s strongest performing, unlisted commercial property funds,
Pacific Property Fund Limited (Pacific Property Fund) – managed by PMG.
Investors can acquire shares in Pacific Property Fund (offer) for a minimum investment of 20,000 shares at $1.22 per share (24,400 shares) and in parcels of 10,000 shares ($12,200)
thereafter, from now until 5pm on 29 April 2021.
Offering a strong comparable forecast gross cash return of 6.02 per cent per annum, the offer in Pacific Property Fund
is available to retail investors. Pacific Property Fund will acquire six properties (four properties will be acquired
using the funds raised from the offer and an additional two will be acquired prior to the settlement of this offer).
Together, the six properties total $108.1 million – Pacific Property Fund’s largest combined acquisition since its
inception in 2013.
The properties being acquired include two high-quality industrial properties (one in Christchurch and Wellington), two
A-grade and recently built office properties (Anderson Lloyd House and Nexia House) in Christchurch’s CBD, and two
industrial properties in Auckland and Hamilton.
PMG CEO Scott McKenzie says the offer is already receiving significant interest due to the current low interest rate
environment alongside the diversification, strong governance, and track record of Pacific Property Fund.
“We have just spent the last two weeks meeting with investors around the country and what’s very clear is it’s getting
harder for investors to find investments offering a reasonable return that do not significantly increase their risk,”
says McKenzie.
“However, the offer in Pacific Property Fund not only provides a good return but peace of mind for investors that they
do not have all their eggs in one property basket,” he says.
Once the Offer is completed and the properties are acquired, Pacific Property Fund's portfolio will be made up of 20
quality commercial properties, with 62 tenants located across the country, and have a total portfolio value of $393
million.
Chairman of the Board of Pacific Property Fund, Denis McMahon, says this offer will make it one of the largest, most
diversified and strongest performing unlisted commercial property funds in New Zealand.
“By deliberate design, we have structured Pacific Property Fund to be resilient throughout the ups and downs of economic
cycles – I have personally experienced four cycles over the last 30 plus years,” McMahon says.
“As a result, Pacific Property Fund’s track record speaks for itself.”
Since its inception, Pacific Property Fund has delivered a higher than 10 per cent total annualised return to investors,
and is expecting over 11 per cent per annum from April 2016 to April 2021 (including gross cash dividend returns and
growth in capital value over this period). Pacific Property Fund is currently paying an equivalent annualised gross cash
dividend return of 7.35 cents per share.
Pacific Property Fund has recently been rated the equivalent of a four out of five-star rating in terms of being a
high-quality investment offering by independent investment research house Research IP.
Those interested in the offer can download a Product Disclosure Statement free of charge by visiting www.pmgfunds.co.nz or by contacting PMG’s Investor Relationships Team on 0800 219 476.
The offer is open on Thursday 25 March 2021. Applications to acquire shares must be received no later than 5.00pm on 29
April 2021 (or earlier if fully subscribed). This offer is not available to investors outside of New Zealand.
About PMG
PMG is one of New Zealand’s most established property funds managers. For over 29 years, PMG has been invested in
delivering long-term sustainability and value for investors through proactive commercial property management and
investment.
PMG’s purpose is to create value and security for people in property, helping New Zealanders achieve financial freedom.
It does this by offering a range of unlisted property funds, which cater for the differing needs of investors and
provide them with choice, diversification (spread of risk) and regular income.
The funds PMG offers and manages on behalf of investors include: PMG Generation Fund, a fund designed to make commercial
property investment possible for all New Zealanders; Pacific Property Fund Limited, a vehicle which invests in
geographically and category diverse properties; and funds which invest in category specific assets, including PMG Direct
Office Fund, PMG Direct Childcare Fund, and PMG Capital Fund Limited.
PMG is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed
funds), which invest in, or own, real property in New Zealand.