PMG offer invests in the next generation of Kiwis
28 July 2017
PMG Direct Childcare Fund launches as part of PMG’s portfolio diversification strategy.
You may recall in the March edition of Property Line, I tackled the issue of how we can prepare and help family members and future generations build their own wealth. This is in a world where the costs of living are skyrocketing, in large part thanks to house prices, with ‘experts’ commenting that younger generations are very unlikely to own their homes in the future.
For me this all comes back to education. Providing a safe, nurturing, engaging and quality learning environment from an early age is essential to creating a love for lifelong learning and attainment. I believe a quality education should be accessible to all New Zealanders.
As a business PMG recognises the importance of education from a young age and is thrilled to announce the launch of PMG Direct Childcare Fund. Its launch is in direct response to the shortage of quality early learning centres which currently exists, particularly in our main cities. In rapidly growing urban areas, parents are demanding new and purpose-built facilities, evidenced by growing waiting lists as parents return to work sooner.
As mentioned in March the NZ Government is also investing in early learning through the provision of subsidies and has committed an additional $396 million in the 2016 budget to fund care for an extra 14,000 children by 2019/2020 (1). This takes the total investment in the sector from $860 million in 2008 to $1.8 billion in 2017.
PMG Direct Childcare Fund is partnering with experienced planners and developers to acquire or design, build and proactively manage purpose-built, industry-leading early learning centres nationwide. PMG has secured two new-build early childhood education properties (with a third in the wings) to be acquired by the Fund, in Auckland and in Christchurch. These will be run by two of the best and most experienced childcare centre operators in the country.
The Fund is now open to eligible wholesale investors and is offering up to 10 million units to be issued at $1 per unit. We are targeting a strong year-one gross distribution return of 6.5cpu* per annum for the full financial year to 31 March 2019. The Fund is targeting a 10%** internal rate of return for the full financial year to 31 March 2019.
We’re thrilled to be providing parents, grandparents and clients the opportunity to invest in the education of the future generation - a cause many of us are very passionate about.
The centres within PMG Direct Childcare Fund will be innovation-led centres, purpose-built from the ground up, both in terms of facilities and interior as well as from an educational perspective. This means the operators can focus on delivering exceptional learning opportunities for youngsters in their care.
The centre operators will be secured on long-term lease contracts to provide secure and stable income for investors.
The PMG Direct Childcare Fund is part of PMG’s wider strategy to provide a diversified portfolio of funds. This ensures our investors enjoy greater choice, improved liquidity, and long-term sustainable returns – a strategy that we’ve been successfully deploying for over 25 years.
The Information Memorandum (IM) for PMG Direct Childcare Fund is available to existing and new eligible wholesale investors and the offer formally closes on August 11, 2017.
To receive copies of the IM or to register your interest see www.pmgfunds.co.nz or contact Matt McHardy on 07 929 7109 (in Tauranga) or Mat Harvie on 09 283 0222 (in Auckland) or email firstname.lastname@example.org
*Target distribution return for the full financial year to 31 March 2019 stated net of expenses but before tax and performance fees, fair value derivative gains/losses and asset revaluations. The payment of distributions is at the discretion of the Manager and is dependent on a number of factors, including meeting appropriate solvency requirements and successful completion of the development of ELE properties being owned by the Fund. Distributions are, therefore, not guaranteed and no distributions are expected to be paid for the full financial year to 31 March 2018.
**Equivalent annualised internal rate of return net of expenses but before tax and performance fees for the full financial year to 31 March 2019. The projected gross distribution is indicative only. The return is not guaranteed by any person. Eligible wholesale investors refers to persons who fall within the definition of “wholesale investor” under the Financial Markets Conduct Act 2013. Further information on the definition of “wholesale investor” will be set out in the information memorandum which will be provided on request to prospective investors. The Fund is not open to retail investors. Property Managers Group is seeking preliminary interest in the Offer. Indications of interest can be made by contacting the Sales and Investment team. No money is currently being sought and no investment interests can be applied for or acquired. No indication of interest will involve an obligation or commitment to acquire the financial products being offered. Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser, which takes into account their personal circumstances. The Sales team is not providing personalised advice.