PMG property fund offers 6.7 per cent

1:04 AM Saturday March 16, 2019 True Commercial

Acquisitions include the Kiwibank Centre building at 410 Victoria St, Hamilton. Photo / Supplied

Property fund manager Property Managers Group (PMG) has launched an opportunity to invest in its AA FundSource rated, unlisted commercial property portfolio, PMG Direct Office Fund.

Funds raised will finance the acquisition of two quality office properties:

  • the Kiwibank Centre building, plus accompanying carpark building, at 410 Victoria St Hamilton; and
  • 65B Main Highway, in the Auckland suburb of Ellerslie, which is fully tenanted (87 per cent by government agencies).

Chief executive of PMG, Scott McKenzie, says the fund is a dedicated office property investment vehicle, which is diversified by geographies and tenants.

“The fund delivers a projected pre-tax cash distribution return of 6.7 per cent perannum (7.50 cents per unit at $1.12 per unit), higher than the returns from a number of asset classes.” says McKenzie.

PMG Direct Office Fund is offering 18,000,000 units at $1.12 per unit, with a minimum investment of 10,000 units and tranches of 5000 units thereafter.

Following the successful completion of this offer, the total value of PMG Direct Office Fund will be $81m, with a portfolio of seven properties, occupied by a mix of 53 quality tenants, weighted by government tenants.

A Product Disclosure Statement is available and applications close at 5pm on April 12, 2019.