12 Aug 2024
Strategic purchase of prime asset in soft market adds resilience and growth potential to investment portfolio
Tauranga-based commercial property fund manager, PMG Funds, has added to its nationwide portfolio with the purchase of the new Willis Bond-developed 161 Victoria Street in Wellington’s vibrant Cuba Quarter.
While falling interest rates have provided a clear signal that we are at or around the bottom of this market cycle, PMG Chief Executive Scott McKenzie says that the once in a decade opportunity to invest at good value, for the long-term, remains available for well-positioned purchasers.
“By retaining the agility to stay active through the high-interest rate environment, we’ve been able to strategically acquire quality property, at good value in what is a soft market, that we otherwise may not been able to get access to. We believe acquiring this prime office asset at this point in the cycle provides our investors exposure to the prospect of sustainable income growth over the years ahead,” says McKenzie
The four-storey office property has been built with 100% base isolated seismic resistance – providing a level of structural integrity that is highly sought after by occupiers in the Capital.
Fully-leased, with anchor tenants The Earthquake Commission (EQC) and Tonkin & Taylor, it also has a 5 Green Star rating.
McKenzie says that the property’s seismic and environmental qualities reflect the clear alignment between PMG’s investment and sustainability strategies.
“Sustainability doesn’t just make common sense, it makes financial sense, providing better outcomes for everyone.”
“Today’s tenants demand and deserve the right to feel safe at work and to minimise their carbon footprint through their working environment. Throughout our portfolio we look to facilitate this, firstly by providing our tenants with quality buildings and then by creating meaningful partnerships with them through our award-winning property management team that ultimately support reliable, regular returns for our investors.”
