PMG funds acquire $96 million in property this year

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Tauranga-based Property Managers Group (PMG) closed its biggest Offer and acquired two quality industrial buildings in December, ending what officials said had been the company’s best year on record.

This year PMG’s funds have acquired eight commercial properties valued at $96 million across New Zealand on behalf of investors, including two recent industrial property acquisitions by Pacific Property totalling
$52 million.

“We are thrilled to end the year knowing that we are delivering over and above our promises and are doing the right thing to look after our investors’ interests,” said PMG Group chief executive and director Scott McKenzie.

The 26-year old unlisted property and funds manager also traded approximately $20 million of secondary sales across its funds on behalf of investors throughout the year – the highest level of secondary sales in PMG’s history.

That had improved overall liquidity for PMG investors, 38 per cent of whom are Bay of Plenty residents.

McKenzie said the good year had been a combination of ensuring PMG was offering what it believed was the most appropriate investment offering in changing market conditions, staying close to the financial aspirations of investors, understanding what they want to do with their investments in PMG, and delivering on those expectations.

“This year we’ve seen a number of new investors invest with us as they gravitate back to tangible assets with reliable revenue streams when markets are volatile and uncertain, just like we are seeing now,” said McKenzie.

“Typically, with unlisted commercial property funds – like PMG offers – clients are investing for the medium to long term in land, bricks and mortar, so global share market volatility is less relevant.”

This coupled with PMG’s strategy of building portfolio diversification, with many properties and tenants in one investment vehicle, aimed to reduce risk. The conservative approach to managing debt to equity ratios were clearly appealing to more investors, he said.

PMG is the first unlisted property and funds manager to receive two AA ratings for its retail investment funds, Pacific Property and PMG Direct Office Fund, by investment research house, NZX-owned FundSource.

“Despite economic predictions painting a more dismal picture in 2019, there doesn’t look to be any slowing down next year for the company,” he said.

PMG is currently preparing a number of new Offers for the market in 2019; has plans to enhance the PMG brand, and is working on a new and innovative investment offering, with further details to come.

“While we can’t predict the economic future, PMG’s 26-year proven track record of providing sustainable returns through a variety of challenging economic fluctuations, and our business model, puts us in good stead to weather any pending turbulence We’re really excited about the year ahead.”

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