TAURANGA 4 August 2021 – Unlisted commercial property funds manager PMG Property Funds Management Limited (PMG) has now
closed its latest offer in its PMG Generation Fund to purchase a high-profile Tauranga shopping centre and a
sought-after industrial property in Wellington.
Funds raised by the offer, along with conservative bank borrowings, have been used by PMG Generation Fund to acquire
Bethlehem Town Centre in Tauranga for a total of $107.6m* and an industrial property at 11-13 Gough Street in Seaview,
Wellington, which is tenanted by respected steel supplier and distributor HJ Asmuss & Co.
This now brings the total portfolio value of the Fund to an estimated $166m*. The Fund comprises of five quality
commercial properties located within main metropolitan centres across New Zealand and is underpinned by notable tenants,
some of which are classed as essential services and provide further confidence around the Fund’s income resilience for
PMG Chief Executive Officer Scott McKenzie is delighted to welcome more than 2000 new investors on board following the
close of the offer. He says the ongoing low interest rate environment, coupled with headwinds in residential property
investment, is generating a high level of interest in commercial property from a wide range of individuals.
In a first, PMG partnered with online investment platform Sharesies and InvestNow to bring this offer to market, which
has resulted in over 1,850 new investors joining through these investment platforms.
“At PMG, we’re passionate about creating value and security for people in property, helping New Zealanders achieve
financial freedom. We have great respect for the innovative work Sharesies have done to simplify the investment
landscape and build financial literacy and we’re delighted to expand our reach and partner with them as part of this
latest offer to market.
“Investment in unlisted commercial real estate is sometimes seen as out of reach for many New Zealanders. Through
Sharesies and InvestNow we are able to help people overcome some of those barriers to invest in commercial property and
make it easier for everyday Kiwis to participate.”
McKenzie believes the strong uptake from both new and existing investors – in one of New Zealand’s largest directly-held
and unlisted commercial property funds – is also a reflection of the track record PMG and its funds have demonstrated
“We are extremely pleased with the number of investors who have come on board and the feedback we have had from
investors about the quality of our offer and the acquisition properties, including the spread of income risk via
multiple tenants, in various industries and the offer of a regular cashflow at an attractive rate.”
PMG’s Chairman of the Board Denis McMahon is impressed by the strong response to the offer, which had an accessible
minimum investment threshold of 1,000 units ($1,090).
“When we launched PMG Generation Fund in 2020, the aim was to help more New Zealanders gain access to the benefits of
investing in commercial property, providing regular income and the opportunity for good capital growth on their
investment. This latest offer has certainly achieved this.”
Since its inception, PMG Generation Fund has delivered a gross cash distribution return of 5.80 cents per unit* to its
original investors and has seen a significant increase in the value of its underlying property assets. With a forecast
gross cash return of 5.5% p.a.**, paid monthly, this offer delivers an attractive passive income so investors can enjoy
the lifestyle they love, well into the future.