Collaboration enables access to property for everyday Kiwis
Commercial property fund manager Property Funds Management Limited (PMG) has entered a partnership with direct-to-consumer fund platform InvestNow, allowing InvestNow clients to invest in PMG Generation Fund.
A recent InvestNow survey to its clients found that 70% of the respondents were interested in unlisted property investments for yield and a portfolio diversifier. They also often already had exposure to listed property funds.
“There is a strong appetite among our client base for other ways to access the commercial property market like unlisted funds, which offer a different return profile to listed products,” said InvestNow general manager Mike Heath.
The PMG Generation Fund offers a mix of retail, commercial, and industrial properties and is designed to enable access to quality property for everyday Kiwis.
On successful completion, the fund will have a 99% tenant occupancy rate, a weighted average lease term of 4.4 years, a low loan-to-value ratio of 37%, and a forecast gross cash return of 5.5% p.a. paid monthly. Investors can also reinvest their monthly cash distributions to take advantage of compounding returns.
PMG chief executive officer and director Scott McKenzie commented: “While PMG has an extensive database of valued clients and supportive financial advisers, we expect platform investors like InvestNow are also looking for opportunities in the NZ unlisted property funds market.”
Read more: PMG subscribes to largest investment offer in its history
Heath noted that InvestNow previously only offered open-ended funds on the platform (in addition to term deposits).
“The PMG Generation Fund is the first product on InvestNow that has a close-off date for investors, but members who are interested in the unlisted property class would understand why and how the process works,” he said. “We’re pleased that InvestNow has the flexibility to include such offers for our members and expect further demand for similar opportunities in the future.”
The offer is open to the public from June 18, 2021. Applications to acquire shares must be received no later than 5pm on July 29, 2021 (or earlier if fully subscribed). The offer is not available to investors outside New Zealand.
PMG Generation Fund will use conservative bank borrowings and the funds raised during the offer period to acquire an industrial property at 11-13 Gough Street in Seaview, Wellington, and the Bethlehem Town Centre in Bethlehem, Tauranga – bringing the total portfolio to approximately $166 million.
