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PMG offer invests in the next generation of Kiwis

PMG offer invests in the next generation of Kiwis

PMG Direct Childcare Fund offers ability to invest in early childhood education sector

AUCKLAND, 11 July 2017 - Today innovative property and fund manager, Property Managers Group (PMG), launched an investment fund for wholesale investors dedicated to supporting the education of the next generation of New Zealanders.

PMG Direct Childcare Fund is partnering with experienced planners and developers to acquire or design, develop and proactively manage purpose-built, industry-leading early learning centres nationwide.

PMG has secured two new build early childhood education properties to be acquired by the Fund, one in Auckland and one in Christchurch. These will be run by two, established and experienced childcare centre operators.

Open to wholesale investors PMG is offering up to 10 million units to be issued at $1 per unit and is targeting a strong year-one gross distribution return of 6.5%* 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.

PMG CEO, Scott McKenzie says early childcare as a property investment class is highly-sought after by investors.

“The sector is viewed as more stable than other asset classes given the strength of the generally long-term leases, strong government funding and New Zealand’s relatively high childcare participation rate,” says McKenzie.

“From a societal perspective, the demand for quality childcare facilities has never been higher. The increase in the costs of living and home ownership, particularly in Auckland and Christchurch, means parents are needing to return to work sooner and sought care for their little ones.

“We know for many families providing top quality educational opportunities for their children is very important but not always possible. Through PMG Childcare Fund we’re thrilled to be helping parents, grandparents and clients to invest in the education of the future generation - a cause many of us are very passionate about,” he says.

The NZ Government is also investing in early learning through the provision of subsidies via the early learning centres. In 2012[1] the Government set itself the goal of ensuring 98% of all children aged between 3 and 5 years old attend a quality early learning centre prior to starting primary school. It has committed an additional $396 million in the 2016 budget to fund care for an extra 14,000 children by 2019/2020.[2]

“There is no doubt that there is a shortage of quality early learning centres in New Zealand, especially in Auckland and Christchurch,” says McKenzie.

“The centres within PMG Direct Childcare Fund will be innovation-lead 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,” he says.

The Fund is part of PMG’s investment strategy to provide a range of unique and solidly-performing property portfolios to our investors.

“Many of PMG’s existing investors are third generation clients with the group. Providing an alternative investment offering which supports families and their futures is an attractive proposition to many of our current investors,” says McKenzie.

The early learning centre operators will be on long-term lease contracts to provide secure and stable income for investors. 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 4, 2017.

Two information evenings about the Fund will be held at PMG offices, on Wednesday 12 July, 5pm, PMG Auckland Office, Level 1, 5 Short Street, Newmarket and on Thursday 13 July, 5pm, PMG Tauranga Office, Level 2, 46 Spring Street, Tauranga.


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