PMG Property Funds Management Limited (PMG) is one of the most established and trusted commercial property fund managers in New Zealand and is licensed by the Financial Markets Authority (FMA)1. PMG expects to have over $650 million in property assets under management across five unlisted funds after the completion of the next proposed offer in Pacific Property Fund Limited. PMG’s five unlisted funds have provided investors with regular and reliable income (paid monthly or quarterly, depending on the fund) and capital preservation2. Investing in real tangible assets can provide security and potential for capital growth over time. Each of PMG’s five funds offers geographical, industry and tenant diversification.
Pacific Property Fund Limited is one of the five unlisted funds managed by PMG. Established in 2014, Pacific Property Fund Limited holds a portfolio of 14 quality, well-located industrial, office and retail properties across main metropolitan cities in New Zealand. Pacific Property Fund Limited expects to acquire a further six3 high-calibre commercial properties in the near future.
The proposed offer
Pacific Property Fund Limited is seeking to raise capital to acquire four properties, two high-quality industrial properties (in Christchurch and Wellington), and two of Christchurch CBD’s “A-Grade”4 and recently built office properties (Anderson Lloyd House and Nexia House). The fund will also be acquiring two further industrial properties independently of the proposed offer, one in Auckland and the other in Hamilton.3
Upon completion of the proposed offer and successful acquisition of these six properties3, Pacific Property Fund Limited will become one of the largest and most diversified unlisted directly held commercial property funds in New Zealand, with a portfolio comprising 20 properties, estimated 62 tenants and an estimated total property portfolio value of $393m.
The proposed offer to invest will be open to all wholesale and retail investors in New Zealand.
Key Investment Information6 (projected as at 30 June 2021)
- Minimum investment: $24,4007
- Price per share: $1.227
- Forecasted Gross Cash Return: 6.02% per annum7
- Total Portfolio Value: $393 million3
- Properties: 203
- Occupancy: 96%9
- Loan-to-Value Ratio (LVR): 39%10
- Weighted Average Lease Term: 5.7 years6
- PMG Property Funds Management Limited is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) which invest in, or own, real property in New Zealand. Pacific Property Fund Limited is not a Managed Investment Scheme for the purposes of the Financial Markets Conduct Act 2013 and does not require a manager licensed by the Financial Markets Authority, or an independent supervisor licensed by the FMA to govern its investment activities.
- Based on historical performance of each fund. Past performance is not indicative of future results.
- Assumes successful acquisition of six properties, but two acquisition properties are not subject to the successful completion of the proposed offer.
- Independently assessed seismic ratings of at least 100% New Building Standard.
- Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser who takes into account their personal circumstances. PMG, its employees, or its contractors, do not provide personalised 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.
- Key Investment Information is forecast as at 30 June 2021, assuming successful completion of the proposed offer, and acquisition of six properties featured in this listing, amongst other factors. The Key Investment Information is based on draft management information and is subject to change.
- The minimum initial share subscription per investor is 20,000 shares (at $1.22 per share), and multiples thereafter of 10,000 shares. For existing Pacific Property Fund Limited investors, additional investments must be in multiples of 10,000 shares.
- 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, will be available in the Product Disclosure Statement which, if the offer proceeds, will be made available free of charge from PMG’s website www.pmgfunds.co.nz.
- Occupancy is based on forecast leased area (including vendor underwrites, leasebacks and top-ups) as a proportion of total net lettable area.
- LVR (or Gearing Ratio) is based on forecast bank borrowings as a percentage of the forecast total assets of Pacific Property Fund Limited.