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Property Managers Group brings its largest offer to market


Property Managers Group brings its largest offer to market

TAURANGA - November 2 - Today one of New Zealand’s most preferred and trusted private property and fund managers, Property Managers Group, has announced two new offers to raise a total of $44 million across two investment portfolios that it will manage, including the established Pacific Property Fund Limited and a new dedicated office managed investment scheme, PMG Direct Office Fund.

The combined raise is the largest offer Property Managers Group has presented to the market in its celebrated 24-year history and offers investors the ability to gain access to diversified portfolios across numerous buildings and tenants at relatively low entry points.

The new PMG Direct Office Fund offer is for up to 29 million ordinary units to be issued at $1 per unit. Property Managers Group CEO, Scott McKenzie, says that PMG Direct Office Fund is the first of a number of new funds Property Managers Group will bring to market and he is excited to be establishing a dedicated commercial office fund off the back of demand from investors.

“Over the past few years the office market, particularly in Auckland, has been performing well with low vacancies and increasing rental returns,” says Scott.

“Our investors have told us they want greater diversification and more sustainable returns. This is achieved by placing multiple properties, rather than one, into a managed investment scheme which provides greater exposure to more buildings and tenants,” he says.

“This is part of our strategic plan to shift away from the traditional single building ownership structures where investor returns are more reliant on the performance and retention of individual buildings and tenants,” says Scott.

PMG Direct Office Fund brings together a number of solidly-performing, single-property investments currently managed by Property Managers Group and creates a portfolio of similar office buildings predominantly in Auckland and Tauranga.

Eight properties will initially go into PMG Direct Office Fund, offering diversification both geographically and across 50 tenants.

PMG Direct Office Fund is targeting a gross distribution return of 7.50% per annum for the first full year to 31 March 2018. Property Managers Group expects the Fund will attract investors who want sustainable returns and exposure to good quality assets in the office market. "PMG Direct Office Fund and Pacific Property offer investors direct commercial property ownership without the challenges of day to day management” Scott says.

Sixteen million new shares in Pacific Property Fund Limited, the largest investment portfolio Property Managers Group manages, are also being offered to the market. The funds raised will go towards the purchase of a logistics industrial hub in the central North Island (Stag Park), an iconic, well-located large format retail property in the CBD of a northern regional city, and a mixed-use commercial and retail property in the heart of Tauranga’s CBD.

Pacific Property Director, Denis McMahon, says the assets Pacific Property intends to acquire offer investors geographical and category diversity, with Stag Park representing a significant redevelopment 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,” says Denis.

“We’re thrilled to be bringing three new properties into Pacific Property, 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,” he says.

Lloyd Baker has been invested with Property Managers Group for 15 years and intends to take up more units and shares in both offers given Property Managers Group’s ability to deliver sustained results.

“I have total trust in the Property Managers Group team to get the best out of my investment,” says Lloyd. “I have been consistently impressed at how well the PMG looks after its investors, tenants, its people and properties. Unlike a listed investment I know the team personally who look after my investments, their door is always open and I feel I have a say over how my funds are managed,” he said.

The Product Disclosure Statements (PDS) for both investment portfolios are now available to existing and new investors and the offer formally closes on December 2, 2016.

To receive copies of the PDS’ or to register your interest in the offers, see www.propertymgr.co.nz or www.pacificproperty.co.nz or contact Matt McHardy on 07 929 7109 or Rae Beale on 021 288 8584, or email info@propertymgr.co.nz

About Property Managers Group

Property Managers Group is one of New Zealand’s most preferred and trusted property and funds manager for the last 24 years. Formed in 1992, PMG has brought to the market 28 separate investing offerings and now has $200m of property and funds under management. Property Managers Group is an owner, manager and investor in property. This unique business model is intrinsic to its success in being able to identify the best properties combined with in-house property management and body corporate expertise to add value to investors, property owners and tenants.

Property Managers Limited 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.

ENDS

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