News & Opinion

PMG Generation Fund- PMG's NEW FUND

25 February 2020

PMG Generation Fund- PMG's NEW FUND

TAURANGA 25 February 2020

Today 27-year old property funds manager PMG Property Funds Management Ltd (PMG) launched a new commercial property fund, called PMG Generation Fund, specifically designed to make commercial property investment possible for more generations of New Zealanders.

 

PMG Generation Fund is a robust, commercial property fund which makes investing easier through its 24-hour fully-digitised application and investment tracking portal; providing a lower minimum investment amount and,in the future the Fund intends to allow investors to invest small amounts often into the fund and reinvest their monthly cash distributions.

CEO Scott McKenzie says he is thrilled to launch PMG Generation Fund whic hbreaks downs barriers to commercial property investmentand is line with PMG’s purpose to help New Zealanders achieve financial freedom.

“PMG Generation Fund not only provides better access to commercial property investment it also provides investors with the same benefits PMG’s other four unlisted investment funds have including regular cash income, the spread of investor risk through the diversification of properties and locations in one fund,and being managed byan experienced property funds manager,” says McKenzie.

“Historically, commercial property investment has been difficult to access by many New Zealandersdue to a lack of confidence and understanding of commercial property, difficult application and investment processes and high minimum investment levels.

“PMG Generation Fundmakescommercial property investment more attractive and easier to understand for more generations of New Zealanders.

Open to all New Zealanders from Thursday 27 February 2020PMG is offering investors the chance to purchase up to 33 million units at $1.00per unit in PMG Generation Fundwith a minimum investment of 1,000 units.

Together with bank debt,the funds raised during the offer period will be used by PMG Generation Fund toacquire three quality industrial properties in Hamilton, Wellington and Christchurch. The three properties arevalued at $52.9million and are 100% occupied by recognised,national and multi-national tenants including Coca Cola Amatil, Euro Steel Corporation and Torpedo7 (owned by the Warehouse Group).

PMG Generation Fund will provide investors with a monthly cash incomewhich McKenzie says is forecasted to be an annualised gross cash distribution return of 5.80 cents per unit1(net of expenses and fees but before tax).

“Compared to other cash investments such as term deposits (currently returningbetween 2.50 and 3.00%2), bonds,and other unlisted commercial funds’offers currently in the market, in our view, 5.80 percent represents a good return on investment,” says McKenzie.

“Initially, PMG is targeting to acquire sought-after industrial properties into PMG Generation Fund. In time (and subject to a regulatory approval which we are currently seeking) the Fund plans to invest in indirect ownership of commercial property via unlisted property funds and listed property vehicles. This will spread investor risk across a wider pool of investment assetsand generate sustainable returns now and in the longer term,” he says.

Those interested in this offer can download a Product Disclosure Statement by visiting www.pmgfunds.co.nz or by contacting PMG’s investor relationship team including Matt McHardy in Tauranga, Mat Harvie in Auckland,Rory Diver in Hamiltonor Jordan Forrestin Canterburyon 0800 219 476.

The offer is open from Thursday 27 February 2020. Applications to acquire units in the Fund must be received no later than 5:00pm on Friday 27 March 2020. This offer is not available to investors outside of New Zealand.

 

1 Projected yield for the full financial year to 31 March 2021 with a cash distribution of 5.80 cents per unit at the issue price of $1.00 cents per unit.The forecast return is indicative only and is subject to the assumptions set out in the Product Disclosure Statement for the offer.

2 https://www.interest.co.nz/saving/term-deposits-1-to-5-years as at 20February 2020

For media enquiries please contact: Bridget Lem Head of CommunicationsPMG P: +64 21 060 6082 E: bridget.lem@pmgfunds.co.nz W: www.pmgfunds.co.nz

About PMG

PMG is one of New Zealand’s most established property funds managers. For over 27years, PMG has been invested in delivering long term sustainability and value for investors through proactive commercial property management and investment.

PMG’s purpose is to create value and security for people in property, helping New Zealanders achieve financial freedom. It does this by offering a range of unlisted property fundswhich cater for the differing needs of investors providing them with choice, diversification (spread of risk) and regular income.

The Funds

PMG offers and manages on behalf of investors include:PMG Generation Fund,a fund designed to make commercial property investment possible for all New Zealanders;Pacific Property Fund Limited, a vehicle which invests in geographically and category diverse properties;and funds which invest in category specific assets,including PMG Direct Office Fund, PMG Direct Childcare Fund, and PMG Capital Fund Limited. PMG 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.