PMG launched two unique investment opportunities in two of its wholesale investment portfolios – PMG Capital Fund Limited (PMG Capital) and PMG Direct Childcare Fund (PMG Childcare).
These offers come to market only days after the PMG received “AA" ratings for two of its retail investment funds, Pacific Property Fund Limited and PMG Direct Office Fund, by NZX-owned FundSource - the first unlisted fund and property manager to achieve this in the country – as well as a positive analysis of both funds by Northington Partners.
PMG CEO, Scott McKenzie, says he is thrilled two of their retail funds have received recommended ratings and good analysis by two of New Zealand’s leading and independent investment research houses.
“These accolades prove we are doing the right thing to look after investors’ interests and are a nod to the scale, professionalism and strong performance of our business and investment portfolios,” says McKenzie.
“Over the past two years, we have worked hard to deliver on investors’ requests for more diversification within existing funds as well as provide investors access to higher possible rates of return and exposure to, growing areas in the commercial property investment sector.
“The launch of PMG Capital and PMG Direct Childcare Fund 18 months ago, and the current offers open, do just that,” says McKenzie.
PMG Direct Childcare Fund is offering wholesale investors (including eligible investors) 5,500,000 units at $1 per unit, targeting a strong gross cash distribution return (net of expenses but before tax) of 6.5% per annum for the full financial year to 31 March 2019, with a minimum investment of $100,000. The Fund is targeting a 10% internal rate of return for the full financial year to 31 March 2019.
PMG is also offering to wholesale investors (including eligible investors) up to 12 million shares at $1 per share in PMG Capital and is targeting a minimum gross distribution return (net of expenses but before tax) of 10% per annum, with minimum investment parcels available from $250,000.
“We’re pleased to bring both offers to PMG’s wholesale and eligible investors at the same time. This timing is unique and provides greater choice for our investors and keeps overall issuance costs down,” says McKenzie.
PMG Direct Childcare Fund builds quality, fit-for purpose early childhood learning centres in strategic and growing areas across New Zealand, based on analysis of demographic data. This issue is to raise the funds to develop two new childcare properties, in Hamilton and in the Auckland suburb of Pukekohe, bringing the total number of centres in the Fund to five.
“With the early childhood sector continuing to experience significant growth[1], combined with a shortage of quality, fit-for-purpose facilities, we believe this opportunity will be filled quickly,” McKenzie says.
PMG Capital Fund is PMG’s real estate, private equity fund. The Fund acquires quality real estate and facilitates its transfer into one of PMG’s investment funds after either adding value, underwriting, or as a short term buy/sell transaction.
PMG Capital is suited to experienced and sophisticated investors who are seeking a higher return and who are comfortable with a slightly higher risk profile and irregular distributions.
“Those interested in either offer should request a copy of the information memorandums by contacting Matt McHardy in Tauranga on (07) 578 3494, Mat Harvie in Auckland on (027) 549 7229, or Sarah Ramsay in the South Island on (021) 552 240. Applications to purchase units or shares in either Fund must be completed and received no later than 5:00pm on 31 October 2018,” says McKenzie.
These offers are not available to retail investors or investors outside of New Zealand.
About the FundSource and Northington Partners research reports here.
About PMG
PMG is one of New Zealand’s most established private property and fund managers. For 25 years PMG has been invested in delivering long term sustainability and value for investors through proactive management and portfolio diversification.
PMG’s mission is to create value for people in property. It does this by offering a range of property portfolios which cater for the differing needs of investors providing them with choice, diversification and sustainable income.
The portfolios PMG offers and manages on behalf of investors includes Pacific Property Fund Limited, a vehicle which invests in geographically and category diverse properties, and portfolios which invest in category-specific assets including PMG Direct Office Fund, PMG Direct Childcare Fund, and PMG Capital Fund Limited.
About FundSource
FundSource is New Zealand's leading investment research house, supplying analysis to financial advisers and fund managers since 1987. FundSource is a well-known and trusted brand in the New Zealand market.
FundSource produces quantitative research and offers insightful industry reports which can be subscribed to.
As a wholly-owned subsidiary of NZX Limited, FundSource realise the importance of supporting and praising excellence in the industry, which is why FundSource recognises the achievements made by fund managers with our annual FundSource Awards. FundSource's research is used to judge these prestigious awards.
About Northington Partners
Northington Partners is a leading independent investment bank and corporate advisory business, servicing a diverse client base from offices in Auckland and Christchurch.
Northington services provides a high-quality mix of expertise, experience and relationships that is unique in the New Zealand market, allowing it to offer a full range of corporate advisory and investment banking services, including conducting independent investment research reports to private and public companies.
[1] https://www.stats.govt.nz/news/more-toddlers-in-formal-early-childhood-care
With a range of investment funds to suit New Zealanders of all ages and stages, it's easier than you may think to invest. Give one of our knowledgeable pmg Investor Relationships Managers a call for a no-obligation chat, or visit our FAQ page.
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