Celebrating 25 years and looking ahead to the next 25
30 November 2017
In July’s Property Line, I shared some of PMG’s milestones over the past 25 years and the significant strides we have made in the last four years in particular. After 25 years as pioneers in commercial property investment and management, we are very proud to be recognised as one of the most established and trusted unlisted property and funds managers in the country. In early October, we celebrated those 25 years with many of you at events in Auckland and Tauranga. You can see photos from the celebrations on page 6 & 7.
I’d like to acknowledge and thank so many of you who have been with us from our early days, many of whom now have their children and grandchildren invested with us.
Our strategy over this time has remained the same: to deliver long term sustainability and value growth for investors through proactive management and innovative portfolio diversification.
The current PMG offer in the market, is a testament to our strategy. Upon closing the offer, our largest investment portfolio, Pacific Property Fund Limited, will become one of the most robust and largest unlisted property portfolios in the country.
Looking forward to 2018, while some are predicting a few storm clouds ahead, with PMG’s diversified strategy we know we are in a great place to weather any rainy days well. PMG has proven its stability by surviving two major economic downturns in the last 25 years.
The next few years bring some interesting challenges for New Zealand as a nation and for many business sectors including real estate. Advances in technology, new innovations and global players such as Amazon coming into the market will mean many organisations will need to change the way they do business. Some say that the property sector has, to date, been largely untouched by technology and digital disruption, and while to an extent this might be true, at PMG we have been planning for it for some time. We’ve asked ourselves the tough questions and what it means for our business, our investors, partners and tenants. Some of these include the following:
• With the predicted arrival of Amazon in NZ, which have publicly said it will undercut all retail sectors by 30%(1), what will this mean for New Zealand retailers, shopping malls and the retail property sector?
• With the retail offering changing and more online shopping likely, what does this mean for industrial property? Does warehousing need to be located in city hubs or can they be based in the regions where land is cheaper?
• How will people want to use office space in the future? In 2018, Millennials (those born between 1981 and 2000) will become the largest age group in the workforce, and by 2025 they will become three quarters of the global workforce(2). They have different ideas about the ways they like to work, including more flexibility, less contractual commitments, co-working space, hot-desking, mobility and placing more emphasis on culture and working for organisations with a social conscience. What does this mean for future office space and property management services?
• With $78.7 billion invested in ‘responsible investments’ in NZ alone in 2016, how and what will investors want to invest in, in the future?
• Uber have a target to have a fully autonomous self-drive fleet by 2030(3), just 13 years away. What’s to become of the inner city carparking building, when cars don’t need to park in town any longer?
What is certain about the future is that change will continue to be a constant and the rate of change will increase. This is why PMG has developed a diversified fund and portfolio structure to generate the autonomy to anticipate these changes, preserve investor value, and proactively take steps to add value.
Unlike many of our competitors PMG has kept, grown and improved an in-house property management division, to ensure our investors’ assets are receiving the best care and oversight.
PMG has stood the test of time over the past 25 years by asking ourselves the tough questions and addressing them front on. It’s one of the reasons why we will be here for the next 25 years and beyond. I look forward to sharing the journey with you.
CEO & Director