PMG’s largest capital raise FULLY SUBSCRIBED
TAURANGA, 17 December 2018 – PMG closed its biggest Offer in its diversified fund, Pacific Property Fund Limited, last week securing $37.44m in three weeks, the largest and shortest capital raise in the unlisted property and funds manager’s history.
As a result of the successful Offer Pacific Property settled $52 million in industrial properties on Thursday 13 December - its largest, combined acquisition. PMG also acquired a third property on Friday, 407 Victoria Street, Hamilton (the Kiwibank Building) valued at $8.050m million, through its real estate private equity fund, PMG Capital Fund Limited.
The award-winning company has had one of its strongest years. PMG’s funds have acquired eight commercial properties valued at $96 million across New Zealand and has traded approximately $20 million of secondary sales across its funds on behalf of investors - the highest level of secondary sales in PMG’s history, improving overall liquidity for PMG investors.
PMG Group Chief Executive and Director, Scott McKenzie, says the acquisitions and fully-subscribed Offer end a year that has been beyond expectation.
“We are thrilled to end the year knowing that we are delivering over and above our promises and are doing the right thing to look after our investors’ interests,” says McKenzie.
Asked why he thinks the year has been a good one, McKenzie says; “It’s been a combination of ensuring we are offering what we believe is the most appropriate investment offering in what are changing market conditions (current and future), staying close to the financial aspirations of investors, understanding what they want to do with their investments in PMG and delivering on those expectations,” he says.
“This year we’ve seen a number of new investors, invest with us, as they gravitate back to tangible assets with reliable revenue streams when markets are volatile and uncertain, just like we are seeing now,” says McKenzie.
“Typically, with unlisted commercial property funds, like PMG offers, clients are investing for the medium to long term in land, bricks and mortar, so global share market volatility is less relevant.
“This coupled with our strategy, to build PMG’s robust business model of portfolio diversification (so many properties and tenants in one investment vehicle, which reduces risk) and ensuring the debt to equity ratios of our funds are managed as conservatively as possible, are clearly appealing to more investors,” he says.
“We also have a fantastic team of people at PMG who all live and breathe our purpose to create value and security for people in property every day, this is a huge part of our success this year – having a committed and passionate team who care about our clients,” says McKenzie.
PMG is one of New Zealand’s most established private property and fund managers. For over 25 years PMG has been invested in delivering long term sustainability and value for investors through proactive management and portfolio diversification.
PMG’s purpose is to create value and security for people in property. It does this by offering a range of property portfolios which cater for the differing needs of investors providing them with choice, diversification and sustainable income.
The portfolios PMG offers and manages on behalf of investors includes Pacific Property Fund Limited, a vehicle which invests in geographically and category diverse properties, and portfolios which invest in category-specific assets including PMG Direct Office Fund, PMG Direct Childcare Fund, and PMG Capital Fund Limited.
PMG is the first unlisted property and funds manager to receive two “AA" ratings for its retail investment funds, Pacific Property and PMG Direct Office Fund, by investment research house, NZX-owned FundSource.
PMG is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) (‘schemes’) which invest in, or own, real property in New Zealand.
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