News & Opinion

PMG raises 44 million dollars in five weeks

12 December 2016

As one of New Zealand’s most preferred and trusted private property and fund managers, we are thrilled to have recently offered and filled two new investment opportunities to the market. Our latest two offers raised a combined total of $44 million across two investment portfolios that Property Managers Group will manage, including the established Pacific Property Fund Limited and a new dedicated office investment scheme, PMG Direct Office Fund.

The combined raise was the largest offer Property Managers Group has presented to the market in our 24-year history, three times more than previous raises we have taken to market. With these offers we are proud to provide investors the ability to gain access to diversified portfolios with numerous buildings and tenants at relatively low entry points.

The new PMG Direct Office Fund brings together a portfolio of solidly performing office properties largely across the Auckland and Tauranga regions. It offers investors sustainable returns and excellent capital growth potential through proactive management focused on building refurbishment and leasing. The offer was fully subscribed with $28 million of investor capital raised.

With the office market performing so well, particularly in Auckland, it gave us great pleasure to present PMG Direct Office to the market. We are delighted to cater for our investors who have told us they want greater diversification and more sustainable returns. By placing multiple properties, rather than one, into a managed investment scheme which provides greater exposure to more buildings and tenants, our investors achieve greater diversification and improved likelihood of sustainable returns.

Eight properties have initially been acquired by PMG Direct Office Fund, offering diversification both geographically and across 50 tenants. The Fund is targeting a gross distribution return of 7.50% per annum for the first full year to 31 March 2018. PMG intends to introduce further dedicated funds to the market in due course.

Sixteen million new shares in Pacific Property Fund Limited, the largest investment portfolio Property Managers Group manages, were also offered to the market. The funds raised were used to assist with the acquisition of a logistics industrial hub in the central North Island (Stag Park), a CBD retail property in Whangarei leased to Farmers for 15 years, and a mixed-use commercial and retail property in the heart of Tauranga’s CBD.

As with the PMG Direct Office Fund, the assets Pacific Property recently acquired offer investors geographical and category diversity, with Stag Park and the Farmers acquisitions representing significant redevelopment and value-add opportunity.

Since its establishment in 2014, Pacific Property has had a clearly defined strategy of investing in industrial, retail and commercial properties predominantly within the ‘Golden Triangle’ of Auckland, Hamilton and Tauranga. We’re thrilled to be bringing three additional quality properties into Pacific Property with this latest offer, targeting a strong and sustainable gross dividend return of 7.20% per annum for the full financial year to 31 March 2018, and delivering greater liquidity.

Nearly 30 per cent of the funds raised came from investors who are new to Property Managers Group and who have not invested in any of our investment portfolios previously, while nearly $32.5 million was raised from existing investors.

The average investment taken up, as part of the combined offer, in PMG’s Pacific Property was $183,000 per investor.  The average investment taken up in the new PMG Direct Office Fund per investor was $160,000.

 

Subscription to both PMG Direct Office Fund and Pacific Property are now closed. If you would like to be first to know about future offers, please do not hesitate to contact either Matt McHardy on 07 929 7109 or Mat Harvie on 09 280 3469 , or email info@pmgfunds.co.nz.