3 Jul 2025
With so much going on in the world right now – rising interest rates, global uncertainty, a tighter lending environment – it’s fair to say the investment landscape looks a little different than it did even a few months ago.
When the market is volatile, the fundamentals matter more than ever. And one of the most important fundamentals? Diversification.
At PMG, we’ve been investing in commercial property for more than 30 years. Across all market cycles, it’s the same core strategies that have helped our funds stand the test of time. Diversifying across property types, locations, and tenants gives us the ability to manage risk while continuing to deliver value.
We’ve always believed in the power of a long-term view. And right now, we’re doubling down on that approach – not only through our fund strategies, but also by expanding into the wholesale capital markets here in New Zealand. In this blog, we share more about the importance of diversification, and how we achieve it through our investment and fund management strategies.
Owning a commercial property outright has always been capital intensive – and in this environment, it’s even more so. B
That’s where unlisted property funds can be a great alternative. Instead of investing hundreds of thousands into one property, investors can access a professionally managed, diversified portfolio at a much lower entry point.
You also get the benefit of scale – exposure to a range of properties (often worth hundreds of millions collectively), without needing to worry about day-to-day management or rising interest rates.
It’s a simple idea: invest less, spread the risk, and stay in for the long haul.
Across our funds, we diversify in four key ways:
1. Property type
We invest in a mix of asset classes – from large-format retail and industrial warehousing to office and education – which gives us resilience and flexibility as the market shifts.
2. Tenant mix
Different industries, different businesses, different lease terms. It’s all about building income stability across the board.
3. Location
Our portfolio spans both the North and South Islands – from Auckland, Hamilton and Tauranga through to Wellington, Christchurch, Invercargill, and more.
4. Sector exposure
We track market demand and emerging trends, and we actively manage our funds to stay aligned with where we see long-term value.
Commercial property is, by nature, a long-term investment. While direct ownership might require a 10-year-plus commitment, our fund structures give investors flexibility while still capturing the benefits of a longer-term view – including regular income and capital growth.
There will always be ups and downs. But the combination of active management and diversification gives us – and our investors – the best possible chance of riding out the bumps and staying focused on the bigger picture.
If you’re thinking about investing in commercial property, or looking to rebalance your existing portfolio, diversification could make all the difference.
Disclaimer: The information in this blog is of a general nature and was current on 3 July 2025. It is not intended to be regulated financial advice under the Financial Markets Conduct Act 2013 and does not take your individual circumstances or financial situation into account. PMG does not provide financial advice. Please seek advice from a licensed financial advice provider before making any investment decisions.
