Pacific Property to double in value with new offer

MEDIA RELEASE

July 18, 2016

Pacific Property to double in value with new offer

TAURANGA, July 18: Today successful private property fund Pacific Property Fund Limited announced a new offer to raise $15 million to fund the purchase of two commercial office properties based in Auckland. The premium properties will double the value of the fund.

The offer to market is for up to 15 million ordinary shares to be issued at $1 per share. Initial pre-offer indications show there is significant interest in the offer due to the forecasted returns and solid weighted average lease term (WALT) across the portfolio.

The Product Disclosure Statement (PDS) is available from today and the offer – available to existing and new investors – formally closes on August 24, 2016.

Pacific Property director, Denis McMahon, believes the offer represents an excellent addition to the Pacific Property Fund portfolio.

“The offer is in line with Pacific Property’s investment strategy to acquire well-located, income-producing properties leased to strong tenants on long leases,” says Mr McMahon.

“This supports the fund’s overall investment philosophy to build a geographically spread and diversified portfolio of industrial, retail and commercial properties which provide strong and sustainable returns to investors and greater liquidity.

“As a responsible property fund Pacific Property bases every investment decision on rigorous research and analysis of each asset. We ensure that each property acquired is one, we as directors would buy ourselves.”

Pacific Property directors, Denis McMahon and Philip Tushingham, are both personally invested in the fund which was established in 2013 and currently has three properties worth $22.575M.

This current offer would take the value of the fund to approximately $46.175 million.

Current Pacific Property investor, Adrian Baker, says that he will be taking up more shares in this latest offer because Pacific Property has provided him with excellent returns to date coupled with it having a conservative debt to equity ratio comparative to other funds in New Zealand.

“In an uncertain world, thanks to global politics and economics, people look to invest in quality and diversified products,” said Mr Baker.

“It’s one of Pacific Property’s key practices to ensure the fund maintains a conservative level of borrowing. As an investor this means the fund is sustainable and my investment is more likely to weather any possible market downturns well,” he said.

Pacific Property is managed by Property Managers Limited (PML), which is part of the Property Managers Group (PMG) of companies, and has been one of New Zealand’s most preferred property syndicators and private property managers for the last 24 years.

Property Managers’ chief executive officer, Scott McKenzie, says with ongoing global volatility and uncertainty the offer represents an opportunity to achieve diversification across good quality assets whilst achieving economies of scale.

“In the growing regulatory environment, Pacific Property provides an opportunity to invest in a portfolio of directly held commercial property whilst benefitting from the skills and experience of an experienced management team,” said Mr McKenzie.

To receive a copy of the PDS or to register your interest in the offer, seewww.pacificproperty.co.nz or contact the selling agent, Matt McHardy on 07 929 7109. Alternatively, the PDS and its accompanying documents are available online at www.business.govt.nz/disclose (OFR 10698).

ENDS

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