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The fund, Pacific Property, is aiming to raise $37.44 million in new investor capital by 7 December 2018 to assist with the acquisition of two quality industrial properties for its portfolio.
PMG chief executive Scott McKenzie says the additional property acquisitions are in line with Pacific Property’s strategy for ongoing growth and diversification.
They also reflect PMG’s continued confidence in the solidly performing commercial property sector.
“Unlisted commercial property funds have been one of the best performing asset classes in the last 3 to 5 years compared to 6 term deposits (3.25%), residential property returns (4.30%) and NZX 50 gross yields (5.20%) over the past 12 months.”
“This coupled with the growing interest we are seeing from both existing and new investors, as well as more enquiry from residential property investors, is what has driven us to launch this offer.”
They are offering investors 36 million shares at $1.04 cents per share in Pacific Property, targeting a strong gross cash distribution return of 7.25 cents per share for the financial year to 31 March 2020.
The offer starts with a minimum investment of 20,000 shares ($20,800) and multiples of 10,000 shares ($10,400) thereafter.
It is the sixth offer Pacific Property has brought to market since the fund’s inception in 2013.
McKenzie says the fund provides investors with the opportunity to diversify their investment portfolio into a proven commercial property investment entity which is underpinned by land, bricks and mortar.
“The company has multiple tenants across multiple buildings which lowers risk, provides investors with confidence of more regular cash flow and is a robust investment vehicle to withstand any future economic conditions.”
Following the successful completion of this offer and acquisition of the two properties, which are in Hamilton and Palmerston North, the total value of Pacific Property will be $183m.
The fund will hold 12 properties, tenanted by a mix of 76 tenants on a weighted average lease term (WALT) of 6.40 years.
More information about the offer can be found here.
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