PMG Successfully Closes Offer And Acquires Vodafone Building
TAURANGA 1 July 2020 – PMG Property Funds Management Ltd (PMG) has successfully raised $37.8m from investors in its latest Offer in PMG Direct Office Fund (the Fund) seeing the Fund acquire the 5 Green-Star rated Vodafone Innov8 building at Tuam Street, Christchurch yesterday.
PMG chief executive, Scott McKenzie, says he is delighted at the successful capital raise and acquisition for PMG Direct Office Fund which took place in a time of much investor uncertainty.
“The current economic climate is naturally generating investor wariness so we are thrilled to have received the support and interest from both existing and new investors in this Offer.”
McKenzie says the success of the Offer was due to a number of factors including the diversified nature of PMG Direct Office Fund with eight quality commercial properties geographically spread across the country with over 75% of the income generated by resilient Government, telecommunication and professional services tenants.
“The Fund’s consistent, monthly gross cash distributions (returns) of 6.4% (for full financial year to 31 March 2022, and 5.5% for the part year to 31 March 2021) compared to other asset classes such as cash investments (with term deposits between 2.3 and 1.5 per cent) and Listed Property Vehicles (LVPs) which have suffered from significant volatility over the last few months, was also a factor in the Offer’s success,” says McKenzie.
“As Manager of the Fund PMG has been an investor, owner and manager of commercial property for over 28 years, surviving through multiple economic downturns in that time.
“Our investors tell us that this depth of experience, history and proven track record of delivering regular and reliable income, throughout economic cycles, is why they continue to invest with us,” he says.
“Over the coming months we anticipate investor confidence growing, adept slowly, as New Zealand trading volumes continue to pick up. We encourage investors who may have missed out in our latest Offer to invest in long term, quality commercial property to contact us to find out more about upcoming opportunities with PMG,” he says.
The Vodafone Innov8 building, is fully tenanted by Vodafone New Zealand as its South Island headquarters, and joins six other quality commercial building in PMG Direct Office Fund.
Those interested in other investment opportunities with PMG can contact PMG’s investor relationships team including Matt McHardy in Tauranga, Rory Diver in Auckland and Northland, or Jordan Forrest in Canterbury on 0800 219 476.
 The projected cash return for the part-year to 31 March 2021 of 6.50 cents per unit at the issue price of $1.18 per unit equates to a 5.5% gross cash yield. The projected cash return for the full year to 31 March 2022 of 7.55 cents per unit at the issue price of $1.18 per unit equates to a gross cash yield of 6.4%. Details on how the forecast return is calculated and the risks associated with the investment can be found in the Product Disclosure Statement, by visiting www.pmgfunds.co.nz.