PMG Opens Door To New Generation Investors With InvestNow
8 July 2021 – PMG, one of New Zealand’s most trusted and established property funds managers, has partnered with online, direct-to-consumer fund platform InvestNow. This collaboration offers InvestNow clients the unique opportunity to invest in PMG Generation Fund, which is open to direct applications via InvestNow from 5th July to 29th July.
Scott McKenzie, PMG Chief Executive Officer and Director, said “InvestNow is an ideal partner to help us engage with the growing audience of online investors.”
“While PMG has an extensive database of valued clients and supportive financial advisers, we expect platform investors like InvestNow’s are also looking for opportunities in the NZ unlisted property funds market.”
Mike Heath, InvestNow General Manager, said a recent survey to their clients found that 70% of respondents were interested in unlisted property investments both for yield purposes and as a portfolio diversifier, and already had exposure to listed property funds.
“There is a strong appetite among our client base for other ways to access the commercial property market like unlisted funds, which offer a different return profile to listed products.”
Open to all New Zealanders, funds raised during the offer period, in addition to conservative bank borrowings, will be used by PMG Generation Fund to acquire an industrial property at 11-13 Gough Street in Seaview, Wellington, and the high-profile Bethlehem Town Centre in Bethlehem, Tauranga, bringing the total portfolio to an estimated $166m.
PMG’s Generation Fund offers a mix of retail, commercial and industrial properties and is designed to enable access to quality property for everyday Kiwis. The Fund, on successful completion, will have a 99% tenant occupancy rate, a weighted average lease term of 4.4 years, a low loan-to-value ratio of just 37%, and a forecast gross cash return of 5.5% p.a paid monthly*. Additionally, investors can reinvest their monthly cash distributions to take advantage of compounding returns.
Heath said InvestNow had previously only offered open-ended funds on the platform (in addition to term deposits).
“The PMG Generation Fund is the first product on InvestNow that has a close-off date for investors but members who are interested in the unlisted property class would understand why and how the process works,” he said. “We’re pleased that InvestNow has the flexibility to include such offers for our members and expect further demand for similar opportunities in the future.”
Those interested in the offer can download a Product Disclosure Statement free of charge by visiting either www.pmgfunds.co.nz or www.investnow.co.nz
The offer is open to the public from Friday, 18 June 2021. Applications to acquire shares must be received no later than 5.00pm 29 July 2021 (or earlier if fully subscribed). This offer is not available to investors outside of New Zealand.
* Key investment metrics and key offer details are extracted from the Product Disclosure Statement dated 10 June 2021, and are forecasted as at 30 July 2021. The metrics and details assume successful completion of the current offer, and ownership of PMG Generation Fund’s existing properties plus the target acquisition properties (amongst other factors). The forecast gross cash return is for the prospective period from 1 August 2021 to 31 March 2023. It is stated before tax, based on forecast gross distributions per annum expressed as a percentage of the expected unit issue price. Details on how the forecast gross cash return is calculated, and the risks associated with an investment in PMG Generation Fund, is available in the Product Disclosure Statement.