Long-term lease of key industrial property underscores nationwide strength of sector outside of main centres
PMG Funds has secured a 10-year lease with nationwide logistics firm PTS Logistics for 31 El Prado Drive, a premium
industrial facility in Milson, Palmerston North.
The property, which is part of PMG Funds’ flagship diversified Pacific Property Fund Limited (PPF), previously served as
EziBuy’s North Island distribution centre.
With over 23,000 square metres of customisable space, a 100% NBS seismic rating and direct connections to current and
future strategic transport links, PMG Funds’ Asset Manager, Matt White, says the property had strong appeal to operators
seeking to be part of the flight-to-quality movement that has characterised the commercial property market for the last
few years.
Rather than look for a short-term solution following the exit of EziBuy, Matt says the organisation sought a tenant with
whom they could build a long-standing relationship.
“For us, the ultimate outcome for our investors is to have good quality long-term tenants. The logistics sector has
continued to perform well through a period of economic turbulence and we worked with PTS throughout the leasing process
to understand their business and scope their long-term requirements for the physical space to ensure we could meet those
needs,” he says.
PTS Logistics has a history dating back to 1976, growing from a small family-owned business transporting vehicles across
the Manawatū region, to a national transport, logistics and warehousing business transporting vehicles, tractors, and
machinery operating across the country.
CEO of PTS Logistics Ray Roberts says the move is an ideal base for their nationwide fleet.
“The central position of this property, in proximity to the Te Utanganui lower North Island transport hub, airport and
future rail depot, as well as key routes, aligns perfectly with our operational needs,” he says.
PPF is PMG’s largest diversified retail investor fund, comprising 22 quality industrial, office and retail properties
and 66 tenants across New Zealand’s main metropolitan centres. With the PTS Logistics lease, the portfolio remains 99%
leased.