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PMG Fully Subscribes Investment Offer; Fastest In Property Funds Manager’s History

Property funds manager PMG Property Funds Management Limited has (PMG) fully subscribed an Offer in its PMG Direct Childcare Fund within 36 hours of the Offer going live.

PMG Chief Executive Officer Scott McKenzie says the Offer in its PMG Direct Childcare Fund – a category-specific commercial property investment fund – is the fastest an investment opportunity has been filled by investors in the company’s history to date.

“We are pleased to have seen strong support from both existing and new investors in the Fund’s Offer,” says McKenzie.

“The rate and speed of enquiry in our latest Offer has been unprecedented,” says McKenzie.

“I believe it’s a combination of the trust investors place in PMG’s depth of experience and capability in performing through multiple economic cycles, since 1992; the low interest rate environment we are in, the Fund’s quality property portfolio and its strong gross cash return of 6.50[1]% per annum, paid monthly.

“With five unlisted commercial property funds which have consistently delivered between 5.5% and 7%[2] returns to investors over the last five years, we are seeing huge rates of enquiry right now.

“Investors are increasingly seeking better options to invest their hard-earned money which offer the security of land, bricks and mortar, and offer attractive cash returns compared to term deposits and bonds[3],” McKenzie says.

The successful Offer in PMG Direct Childcare Fund comes off the back of a successful year for manager PMG.

From 1 January to 31 October 2020, PMG will have overseen eight commercial property transactions valued at over $150 million this year across its five funds. The manager has also completed two other capital raise offers, one in its PMG Generation Fund and one in its PMG Direct Office Fund, raising $33 million and $37.76 million from investors, respectively.

“It’s been a challenging year for most businesses,” McKenzie said.

“We’re pleased to have been able to support our tenants through two lockdowns, complete these three capital raise Offers and property acquisitions, and maintain returns to our investors of between 5.5 and 7%[4] per annum.

“Pursuing a strategy to ensure we balance the needs of all our stakeholders has proven the right one in 2020. Continuing to achieve these returns for investors has been a direct result of PMG’s 28 years of experience through multiple economic cycles and our strategy, particularly in the last six years to achieve income resilience in our funds,” he says.

 

The PMG Direct Childcare Fund is part of PMG’s investment diversification strategy, and provides an alternative investment choice for investors in commercial property, as well as the opportunity for them to contribute to the education of young New Zealanders.

Since the Fund’s inception in 2017, PMG has focused on developing and acquiring new or recently built, quality centres in communities where there is currently a lack of quality education-focused facilities for pre-schoolers.

About PMG

PMG is one of New Zealand’s most established property funds managers. For over 28 years, PMG has been invested in delivering long-term sustainability and value for investors through proactive commercial property management and investment.

PMG’s purpose is to create value and security for people in property, helping New Zealanders achieve financial freedom. It does this by offering a range of unlisted property funds, which cater for the differing needs of investors and provide them with choice, diversification (spread of risk) and regular income.

The funds PMG offers and manages on behalf of investors include: PMG Generation Fund, a fund designed to make commercial property investment possible for all New Zealanders; Pacific Property Fund Limited, a vehicle which invests in geographically and category diverse properties; and funds which invest in category specific assets, including PMG Direct Office Fund, PMG Direct Childcare Fund, and PMG Capital Fund Limited.

PMG is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds), which invest in, or own, real property in New Zealand.

[1] The projected annualised gross cash distribution return from 1 November 2020 is 6.825 cents per unit on a unit issue price of $1.05 per unit. The issue price is primarily based on independent valuations and is subject to change.

[2] Based on historical performance of the funds. Please refer to pmgfunds.co.nz for current metrics and more information. Prospective investors are recommended to seek professional advice from an Authorised Financial Advisor who takes into account their personal circumstances.

[3] https://www.interest.co.nz/saving/term-deposits-1-to-5-years, as at 29 September 2020

[4]Based on historical performance of the funds. Please refer to pmgfunds.co.nz for current metrics and more information. Prospective investors are recommended to seek professional advice from an Authorised Financial Advisor who takes into account their personal circumstances.

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