Complex offers and jargon can make investment confusing, we aim to keep things simple.
There are several reasons to consider investing in a commercial property fund. A diversified commercial property fund can provide investors with the benefits of investing alongside a pool of other investors across multiple properties with a mix of tenants. This means investors’ risk is feasibly spread across more properties and tenants than if they owned a single property.
As with PMG, diversification of properties, tenants and locations can provide investors with improved income sustainability. Should a single tenant or property not perform as expected, the other properties and tenants in the fund may help reduce the impact on the overall portfolio’s returns. As a result of having multiple investors in a property fund (compared to single property syndication), there are more investors who may wish to sell shares or units, or buy shares or units, should an investor’s circumstances change. This service is called the PMG matching service. The time it takes for PMG to assist with the sale and purchase of investments can vary, and we would always encourage investors to take a long term view when investing with PMG.
PMG owns and invests in commercial property throughout New Zealand, with each fund owning well-located industrial, office and retail properties. However, PMG Direct Childcare Fund is a sector-specific fund, investing in new, purpose-built childcare centres in metropolitan centres in New Zealand. All offers, when made available, have a Product Disclosure Statement that provides in-depth information on all the properties within the fund.
PMG has a large number of diverse investors across New Zealand. Many have been introduced to PMG by family and friends over the years – we now even have four generations of one family invested with PMG. We have high net worth individuals, wholesale investors, family office, corporate investors, charitable organisations and even high school students. We also have hard-working New Zealanders who are planning for their retirement or family financial goals, as well as retirees who use their income from PMG investments to support their lifestyles.
Through PMG Generation Fund, we have many young New Zealanders who are starting their investment journey, utilising the low minimum investment amount (entry price) the fund offers to start building financial freedom. Better yet, they're able to learn the power of compounding returns through PMG's Reinvestment Plan.
PMG Property Funds Management Limited (PMG). Dating back to 1992, PMG is one of the most established and most trusted licensed property funds managers in New Zealand.
PMG (the Manager) 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.
Currently, returns (also known as cash distributions) are paid into an investor's nominated bank account monthly with the exception of the PMG Capital Fund.
There is also the opportunity to reinvest returns into the PMG Reinvestment Plan.
All projected and forecasted gross cash returns quoted to investors are stated net of ongoing fees and expenses charged to the fund but before taxation. Ongoing fees and expenses paid by a fund to PMG will typically include a Property Management Fee payable to PMG (based on the fund's total rental income) and a Fund Management Fee (based on the total value of the property investments under management). These fees are directly linked to investors' key drivers of financial returns – helping ensure that investors and PMG’s interests are aligned. We invest alongside our clients, sharing both the risks and returns, so our directors and team have skin in the game too.
For investment-specific information, please see the relevant fund's Product Disclosure Statement or contact our Investor Relationships Team.
There is no minimum timeframe for investments made with PMG. However, PMG (as the manager of the funds) is a long-term value investor. This means we identify and invest in commercial property that potentially presents the opportunity to grow value for investors over the long term. Therefore, any investment decision is best made with a long-term investment horizon.
Thanks to PMG’s extensive database of investors, we facilitate a secondary market or matching service, where you can either buy or sell your PMG shares and units to other eligible PMG investors. The time it takes to find another investor to acquire your shares or units can vary depending on the number of investors who are looking to buy shares or units at any point in time. From time to time, PMG may also offer redemptions for the applicable funds – this will be dependent on the specific fund and is offered at PMG’s discretion.
All PMG funds are structured as Portfolio Investment Entities (PIE) for tax purposes. Returns are taxed at source at each investor’s Prescribed Investor Rate (PIR) (of up to 28%), and tax is paid directly to the IRD. Investing in a PIE can provide tax advantages for direct investments. As the PIR that tax is paid on PIE income is capped at 28%, there can be tax advantages if a unitholder is on a higher tax rate. This means you could end up paying less tax than you would on a non-PIE investment, which has a tax rate of up to 33%.
If you have any questions relating to the taxation of your investment, we recommend you seek professional advice from your Financial Advice Provider or accountant.
At PMG, we pride ourselves on customer service and operate an open-door policy. We provide timely and informative communication (mainly via email) across the following:
Investment in some of PMG’s funds is only open to persons who meet the legal criteria of a wholesale investor under the Financial Markets Conduct Act 2013 (FMC Act), which includes “eligible wholesale investors”. An eligible wholesale investor is a person who has sufficient knowledge and experience dealing in financial products, enabling them to sufficiently assess the merits of a transaction, their information needs in relation to the transaction, and the adequacy of the information provided in relation to the transaction. To be an eligible wholesale investor under the FMC Act, a person must, before making an investment, certify in writing that they are an eligible investor. The certification must be confirmed by a Financial Advice Provider, lawyer or chartered accountant.
Yes. PMG was one of the first unlisted property funds managers licensed by the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds), which invest in, or own, real property in New Zealand.
New Zealand listed and unlisted property funds are governed by the applicable laws including the Financial Markets Conduct Act 2013 (FMCA) and regulated by the Financial Markets Authority (FMA).
Listed property funds (or sometimes known as Listed Property Vehicles) are quoted on stock exchanges such as the NZX, allowing investors to purchase shares/units in that fund through a broker or investment platform. Shares/units in listed property funds can be traded when the market is open. Market sentiment and demand for a fund can quickly influence share/unit prices, which can result in the fund trading below its true value (or the value of its underlying property assets).
Unlisted property funds issue shares or units and are not quoted on a listed exchange (such as the NZX). To sell shares or units in an unlisted property fund, the Managers typically offer a matching service, facilitating the matching of buyers with sellers or, where it is permitted, private transfers may be arranged by buyers and sellers between themselves. Sometimes, unlisted property funds may also have ‘redemption’ periods available, which allows investors to ‘redeem’ their shares or units. The value of the shares or units is updated regularly with a prescribed valuation methodology as set out in the Fund’s establishment deeds. The value of shares or units in unlisted property funds are valued annually by an independent registered valuer (or more frequently as required), so the unit price generally reflects the actual value of the underlying property assets rather than the regular fluctuations of market or investor emotion and sentiment.
PMG’s reinvestment plan was originally a feature of PMG Generation Fund. Since the Fund launched in March 2020, the focus has been on providing everyday New Zealanders with greater accessibility to commercial property investment.
Today, the Reinvestment Plan allows all PMG investors, in any of our funds, to reinvest their returns into PMG Generation Fund. It is a fantastic opportunity for those investors that want to see their passive income work even harder, achieving greater financial freedom. It also means New Zealanders can invest small amounts often in quality, unlisted commercial property.
To start investing with PMG, register your contact details via phone or email. Alternatively, make an enquiry via our contact form and we’ll have someone from our Investment Relationships Team meet you.
Watch PMG’s history video to learn more about our approach to commercial property investments, along with the five funds within the company. We encourage you to speak with a friend or family member who knows us, and we also recommend you chat with a Financial Advice Provider for specific advice to suit your unique situation.
Look through our current investment offers to find the right PMG fund to suit you. After downloading, carefully review the associated Product Disclosure Statement(s) for the offer(s) you’re interested in. Investing with us is straightforward – either apply online using our secure and confidential investor portal, via the printable form on each fund page, or reach out to your local PMG office to fill out the relevant paperwork.
Our lines of communication are always open. If you have any questions, reach out to your local PMG Investor Relationships Manager. Whether it’s a general catch up or discussion around the latest developments with your investment, we’re here to help.