The company has closed its latest offer in its PMG Generation Fund raising $ million

The funds will be used to purchase a high-profile Tauranga shopping centre and a sought-after industrial property in Wellington.

Funds raised by the offer, along with conservative bank borrowings, have been used by PMG Generation Fund to acquire Bethlehem Town Centre in Tauranga for a total of $107.6 million and an industrial property at 11-13 Gough Street in Seaview, Wellington, which is tenanted by steel supplier and distributor HJ Asmuss & Co.

This now brings the total portfolio value of the Fund to an estimated $166 million. The fund owns five quality commercial properties located within main metropolitan centres across New Zealand and is underpinned by notable tenants, some of which are classed as essential services and provide further confidence around the fund’s income resilience for investors.

PMG chief executive Scott McKenzie said the ongoing low interest rate environment, coupled with headwinds in residential property investment, are generating a high level of interest in commercial property from a wide range of individuals.

For this offer PMG partnered with online investment platform Sharesies and InvestNow, which has resulted in over 1,850 new investors joining through these investment platforms.

“At PMG, we’re passionate about creating value and security for people in property, helping New Zealanders achieve financial freedom."

McKenzie believes the strong uptake from both new and existing investors – in one of New Zealand’s largest directly-held and unlisted commercial property funds – is also a reflection of the track record PMG and its funds have demonstrated over time.

“We are extremely pleased with the number of investors who have come on board and the feedback we have had from investors about the quality of our offer and the acquisition properties, including the spread of income risk via multiple tenants, in various industries and the offer of a regular cashflow at an attractive rate.”

The PMG Generation Fund was launched in 2020 with the aim was to help more New Zealanders gain access to the benefits of investing in commercial property, providing regular income and the opportunity for good capital growth on their investment.

Since its inception the fund has delivered a gross cash distribution return of 5.80 cents per unit to its original investors and has seen a significant increase in the value of its underlying property assets.