Investors Race to Invest in Commercial Property Fund

PMG fully subscribes investment Offer – fastest in property funds manager’s history

TAURANGA 30 September 2020

Property funds manager PMG Property Funds Management Limited has (PMG) fully subscribed an Offer in its PMG Direct Childcare Fund within 36 hours of the Offer going live.

PMG Chief Executive Officer Scott McKenzie says the Offer in its PMG Direct Childcare Fund – a category-specific commercial property investment fund – is the fastest an investment opportunity has been filled by investors in the company’s history to date.

“We are pleased to have seen strong support from both existing and new investors in the Fund’s Offer,” says McKenzie.

“The rate and speed of enquiry in our latest Offer has been unprecedented,” says McKenzie.

“I believe it’s a combination of the trust investors place in PMG’s depth of experience and capability in performing through multiple economic cycles, since 1992; the low interest rate environment we are in, the Fund’s quality property portfolio and its strong gross cash return of 6.50%[1] per annum, paid monthly.

“With five unlisted commercial property funds which have consistently delivered between 5.5% and 7%[2] returns to investors over the last five years, we are seeing huge rates of enquiry right now.

“Investors are increasingly seeking better options to invest their hard-earned money which offer the security of land, bricks and mortar, and offer attractive cash returns compared to term deposits and bonds[3],” McKenzie says.

The successful Offer in PMG Direct Childcare Fund comes off the back of a successful year for manager PMG.

From 1 January to 31 October 2020, PMG will have overseen eight commercial property transactions valued at over $150 million this year across its five funds. The manager has also completed two other capital raise offers, one in its PMG Generation Fund and one in its PMG Direct Office Fund, raising $33 million and $37.76 million from investors, respectively.

“It’s been a challenging year for most businesses,” McKenzie said.

“We’re pleased to have been able to support our tenants through two lockdowns, complete these three capital raise Offers and property acquisitions, and maintain returns to our investors of between 5.5 and 7%[4] per annum.

“Pursuing a strategy to ensure we balance the needs of all our stakeholders has proven the right one in 2020. Continuing to achieve these returns for investors has been a direct result of PMG’s 28 years of experience through multiple economic cycles and our strategy, particularly in the last six years to achieve income resilience in our funds,” he says.


[1] The projected annualised gross cash distribution return from 1 November 2020 is 6.825 cents per unit on a unit issue price of $1.05 per unit. The issue price is primarily based on independent valuations and is subject to change.

[2] Based on historical performance of the funds. Please refer to pmgfunds.co.nz for current metrics and more information. Prospective investors are recommended to seek professional advice from an Authorised Financial Advisor who takes into account their personal circumstances.

[3] https://www.interest.co.nz/saving/term-deposits-1-to-5-years, as at 29 September 2020

[4] Based on historical performance of the funds. Please refer to pmgfunds.co.nz for current metrics and more information. Prospective investors are recommended to seek professional advice from an Authorised Financial Advisor who takes into account their personal circumstances.


For media enquiries please contact:

PMG Head of Communications Bridget Lem

P: +64 21 060 6082

E: bridget.lem@pmgfunds.co.nz

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4 steps to investing with pmg

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1. Reach out

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 adviser 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.