PMG Fully Subscribes Largest Investment Offer In Company’s History Pacific Property Fund Limited Raises $68 Million.
Unlisted commercial property funds manager PMG Property Funds Management Limited (PMG) has fully subscribed an offer to raise $68 million in its flagship fund, Pacific Property Fund Limited (the Fund).
PMG Chief Executive Officer Scott McKenzie says the offer – in one of New Zealand’s largest directly-held and unlisted commercial property funds – is the largest opportunity the company has brought to market to date.
“Given the current low interest rate environment, the attractive return that Pacific Property Fund Limited is offering investors, and the Fund’s highly diversified nature, we knew there was going to be considerable interest from the public to invest,” Scott McKenzie says.
“We believe the speed at which the offer was taken up is a direct reflection of the track record PMG and our funds have demonstrated over time, and investors seeking out reliable alternatives to term deposits.
“On top of that, the recent restrictions and compliance pressures placed on the residential property investment market highlights the strength, historical resilience and ease of investing in an unlisted commercial property fund like Pacific Property Fund Limited.”
The Fund offers retail investors a strong comparable forecast gross cash dividends of 7.35 cents per share per annum paid quarterly, which at the current share issue price of $1.22 per share, represents a gross cash return of 6.02 per cent per annum (paid quarterly).
From March 2021 to June 2021, the Fund expects to acquire six properties (with four of these properties to be acquired using the funds raised from the offer). Together, the six properties are valued at $128 million.
The properties to be acquired include two high-quality industrial properties (one in Christchurch and Wellington), two A-grade and recently built office properties (Anderson Lloyd House and Nexia House) in Christchurch’s CBD, and two industrial properties in Auckland and Hamilton.
On settlement of all six properties, the Fund’s portfolio will consist of 20 quality commercial properties with 62 tenants located across the country, achieving a total estimated portfolio value of $393 million.
PMG’s Chairman of the Board, Denis McMahon, says he’s pleased to see the strong response to Pacific Property Fund’s latest offer.
“When we established the Fund in 2014, the aim was to grow a robust and diverse Fund which would withstand major economic downturns. I believe that the performance of the Fund through the pandemic in 2020 showed that we have succeeded in doing just that,” Denis McMahon says.
Since 1 April 2016, the Fund has delivered a higher than 10 per cent total annualised return to investors.
Pacific Property Fund Limited has also recently been rated the equivalent of a four out of five-star rating regarding its high-quality investment offering by independent investment research house Research IP.
PMG plans to bring additional investment offerings to market this year in its five unlisted commercial property funds. Those interested to find out more information on PMG’s investment opportunities should contact PMG’s Investor Relationships Team on 0800 219 476.
PMG is one of New Zealand’s most established property funds managers. For over 29 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.