Pacific Property Fund offers investors 6.02 percent return

PMG Property Funds Management is offering an opportunity to invest in one of New Zealand’s strongest performing, unlisted commercial property funds, Pacific Property Fund – managed by PMG.

The Pacific Property Fund (offer) expects to raise up to $68 million to acquire four commercial properties and investors can acquire shares for a minimum investment of 20,000 shares at $1.22 per share (24,400 shares) and in parcels of 10,000 shares ($12,200) thereafter, until 5pm on April 29, 2021.

Offering a strong comparable forecast gross cash return of 6.02 percent per annum, the offer in Pacific Property Fund is available to retail investors.

Pacific Property Fund will acquire six properties: four properties will be acquired using the funds raised from the offer and an additional two will be acquired prior to the settlement of this offer. Together, the six properties total $108.1 million – Pacific Property Fund’s largest combined acquisition since its inception in 2013.

The properties being 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.

PMG CEO Scott McKenzie said the offer is already receiving significant interest due to the current low interest rate environment alongside the diversification, strong governance, and record of Pacific Property Fund.

“We have just spent the last two weeks meeting with investors around the country and what’s very clear is it’s getting harder for investors to find investments offering a reasonable return that do not significantly increase their risk,” said McKenzie.

Once the Offer is completed and the properties are acquired, Pacific Property Fund’s portfolio will be made up of 20 quality commercial properties, with 62 tenants located across the country, and have a total portfolio value of $393 million.

Chairman of the Board of Pacific Property Fund, Denis McMahon, said this offer will make it one of the largest, most diversified and strongest performing unlisted commercial property funds in New Zealand.

“By deliberate design, we have structured Pacific Property Fund to be resilient throughout the ups and downs of economic cycles – I have personally experienced four cycles over the last 30 plus years,” McMahon said.

“As a result, Pacific Property Fund’s track record speaks for itself.”

Pacific Property Fund has recently been rated the equivalent of a four out of five-star rating in terms of being a highquality investment offering by independent investment research house Research IP.

Those interested in the offer can download a Product Disclosure Statement free of charge by visiting www.pmgfunds. co.nz or by contacting PMG’s Investor Relationships Team on 0800 219 476. track