TAURANGA 29 March 2021
Today, PMG Property Funds Management Ltd (PMG) opens an opportunity to invest in one of New Zealand’s strongest performing, unlisted commercial property funds, Pacific Property Fund Limited (Pacific Property Fund) – managed by PMG.
Investors can acquire shares in Pacific Property Fund (offer) 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 (1), from now until 5pm on 29 April 2021 (2).
Offering a strong comparable forecast gross cash return of 6.02 per cent per annum (3), 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) (4). 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 (5) 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 says the offer is already receiving significant interest due to the current low interest rate environment alongside the diversification, strong governance, and track 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,” says McKenzie.
“However, the offer in Pacific Property Fund not only provides a good return but peace of mind for investors that they do not have all their eggs in one property basket,” he says.
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, says 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 says.
“As a result, Pacific Property Fund’s track record speaks for itself.”
Since its inception, Pacific Property Fund has delivered a higher than 10 per cent total annualised return to investors and is expecting over 11 per cent per annum (6) from April 2016 to April 2021 (including gross cash dividend returns and growth in capital value over this period). Pacific Property Fund is currently paying an equivalent annualised gross cash dividend return of 7.35 cents per share.
Pacific Property Fund has recently been rated the equivalent of a four (7) out of five-star rating in terms of being a high-quality 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 (here) or by contacting PMG’s Investor Relationships Team on 0800 219 476 (8).
The offer is open on Thursday 25 March 2021. Applications to acquire shares must be received no later than 5.00pm on 29 April 2021 (or earlier if fully subscribed). This offer is not available to investors outside of New Zealand.
References
1 For existing investors, investments must be in multiples of 10,000 shares.
2 The offer may close before 5pm 29 April 2021, at the sole discretion of the Company and PMG, if it is fully subscribed.
3 The forecast gross cash return is for the prospective period ending 31 March 2022. It is stated before tax, based on forecast gross dividends per annum of 7.35 cents per share, and expressed as a percentage of an expected share issue price of $1.22 per share. Details on how the forecast gross cash return is calculated, and the risks associated with an investment in Pacific Property Fund Limited, is available in the Product Disclosure Statement, free of charge from our website www.pmgfunds.co.nz.
4 Assumes successful completion of six acquisition properties: 400 Arthur Porter Drive and 102 Langley Road will be acquired prior to the settlement of this offer and these acquisitions are not dependent on the outcome of this offer. 3 Distribution Lane, 410 Eastern Hutt Road, 70 Gloucester Street and 123 Victoria Street will be acquired on or following settlement of this offer, subject to the successful completion of the offer.
5 In 2015, Anderson Lloyd House won a merit award at the Property Council of New Zealand Awards. Both Anderson Lloyd House and Nexia House have independently assessed seismic ratings of at least 100% New Building Standard (NBS).
6 Gross internal rate of return to an investor including gross cash dividends and increases in the board approved share price over time. Presumes purchase of a share in Pacific Property Fund Limited at the Board approved share on 1 April 2016 of $1.00, continuous ownership of that share to 30 April 2021, receipt of quarterly gross cash dividend returns from the quarter ending 30 June 2016 to the forecast dividend return for the quarter ending 31 March 2021, and increases in the board approved share price over time, including a forecast price of $1.22 per share on 30 April 2021. Past returns are not an indication of future results. Pacific Property Fund is an equity issuer and not classed as a Managed Investment Scheme
7 Research IP - Qualitative Fund Research (5 March 2021) This rating has been rounded up to the nearest star – Pacific Property Fund Limited is rated 3.99 stars out of 5.
8 Prospective investors are recommended to seek professional advice from a Financial Advice Provider who takes into account their personal circumstances. Neither Pacific Property Fund Limited or the PMG Investor Relationships Team provides financial advice. No person may offer, invite any offers or distribute any documents (including a Product Disclosure Statement) to any person outside New Zealand without the approval of PMG.
For media enquiries please contact:
Head of People, Communications and Culture, Bridget Lem
P: +64 21 060 6082
E: bridget.lem@pmgfunds.co.nz
W: www.pmgfunds.co.nz
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