FundSource AA rated Pacific Property aims to raise $37.44m for two industrial properties
Today PMG is bringing to market its largest retail Offer in its diversified, unlisted commercial property fund, Pacific Property Fund Limited (Pacific Property).
Managed by PMG, this is the sixth Offer Pacific Property has brought to market since its inception in 2013.
The company is aiming to raise $37.44 million in new investor capital by 7 December 2018 to assist with the acquisition of two quality industrial properties for its portfolio, 33 Vickery Street in Hamilton, tenanted by Alto Packaging and 31 El Prado Drive in Palmerston North, which is well-known online retailer EziBuy’s main distribution centre.
Pacific Property is offering investors 36 million shares at $1.04 cents per share in Pacific Property, targeting a strong gross cash distribution return (net of expenses but before tax) of 7.25 cents per share for the full financial year to 31 March 2020. Starting with a minimum investment of 20,000 shares ($20,800) and multiples of 10,000 shares ($10,400) thereafter.
PMG chief executive, Scott McKenzie says, the additional property acquisitions are in line with Pacific Property’s strategy for ongoing growth and diversification and PMG’s continued confidence in the solidly performing commercial property sector.
“Unlisted commercial property funds have been one of the best performing asset classes in the last 3 to 5 years compared to 6 term deposits (3.25%), residential property returns (4.30%) and NZX 50 gross yields (5.20%) over the past 12 months*[1],” says McKenzie.
“This coupled with the growing interest we are seeing in Pacific Property from both existing and new investors, as well as more enquiry from residential property investors, is what has driven us to launch this Offer.
“Pacific Property provides investors with the opportunity to diversify their investment portfolio into a proven commercial property investment entity which is underpinned by land, bricks and mortar. The Company has multiple tenants across multiple buildings which lowers risk, provides investors with confidence of more regular cash flow and is a robust investment vehicle to withstand any future economic conditions,” he says.
Following the successful completion of this Offer and acquisition of the Hamilton and Palmerston North properties, the total value of Pacific Property will be $183m, with the fund holding 12 properties, tenanted by a mix of 76 tenants on a weighted average lease term (WALT) of 6.40 years.
Those interested in the Offer can download a Product Disclosure Statement by visiting www.pmgfunds.co.nz or by contacting Matt McHardy in Tauranga (021) 193 4550, Mat Harvie in Auckland on (027) 549 7229, or Sarah Ramsay in the South Island on (021) 552 240. Applications to purchase shares must be received no later than 5:00pm on 7 December 2018.
About PMG
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.
[1] https://www.strongholdinvest.com.au/pros-and-cons/.
*Past performance is not an indicator of future returns. Returns do not account for taxation, which may vary depending on an individual investor’s personal circumstances.
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