10 years at the helm
“They make a big part of our fabric, really. We have a saying: ‘Some of the parts are greater than the whole’.”
In 2016, PMG Funds became licensed by the Financial Markets Authority.
“That was a point in our journey where PMG grew up,” he said.
It introduced a governance structure and began investing heavily in technology, infrastructure systems, and processes to position itself for future growth.
It launched a Direct Office Fund in 2016, a Direct Childcare Fund and Capital Fund in 2017, and a Generation Fund in 2020 to pave the way for people, including the younger generation, to passively invest in commercial real estate.
Today, the company has 40 staff spread across three offices in Tauranga, Auckland, and Christchurch, and a portfolio from Invercargill through to Whangarei.
“We are nationwide now,” Mckenzie said. “We look after $930m of real estate nationwide.”
PMG Funds has grown from 120 investors in 2012 to more than 4000 investors on its books today, he said.
“We have now got six-month-olds through to 94-year-olds. Four generations of investors invested with us.
“It is quite a deep range of New Zealand’s demographic involved with us now, which is really nice. People can participate and receive the benefits of being invested in commercial real estate.
“We are recognised as an important piece of the fabric of the unlisted property investment space now among our peers.”
Secret to success
Continuing Mcmahon’s mantra, Mckenzie and the team were also invested in the business.
“We genuinely treat the buildings that we look after as if we own them, because often we do. We think with our investor hat on because, literally, we are investors as well. That philosophy and culture permeates through the business.”
Moving forward, Mckenzie said it was important to continue to “retain the essence of who we are” and be “the good people” of property funds management.
Sustainability was part of growing the business, he said.
“For us, it is about how we continue to be more efficient with the elements of the business we are responsible for as custodians. If we can improve our energy and efficiency, and make the environment more appealing for our customers/tenants, often that is going to lead to savings and be more attractive for our tenants to stay with us while also benefiting carbon emission footprints.”
Supporting the community it operated in was also important, he said, which was why the PMG Charitable Trust was set up last year specifically to address financial inequality among New Zealanders and help build the financial futures of young Kiwis.
“We believe everyone has the right to financial success, but not everyone has the know-how.”
Mckenzie said the
company’s secret to success was “cliche´ but true”: “He tangata, he tangata, he tangata — the people, the people, the people.
“We have worked really hard and continue to work hard on fostering the culture we have within our business. The inclusiveness, being an employer of choice; people wanting to not only stay with us, but come and work for us. That’s about just treating people well.”