Down to work within a week of forming partnership

PMG is about to launch a $66 million capital raise to buy four mainly industrial properties off-market across Christchurch, Wellington, Hamilton and Auckland for $108 million, each individually owned. 360 Capital will underwrite a portion of the capital raise, while extra borrowings will complete the purchases due to be settled next month.

When the deals are completed, the four properties will go into PMG’s Pacific Property Fund Limited bringing the total number of properties in the fund to 20 with 63 tenants. The portfolio is weighted towards the industrial sector.

Investors will be able to buy 20,000 shares at $1.22 each, and 10,000 shares thereafter, for a forecasted gross cash return of 7.35 cents per share, a yield of 6.02% per share, which PMG chief executive Scott McKenzie says more than compares with other funds generally offering 4.5-5.5% yields.

McKenzie says the partnership with 360 Capital is fundamentally to bring further property funds management expertise into PMG’s business as well connections to raise additional capital, particularly institutional capital, and to lift the bar around high-quality property and investment funds. “We have a road map of growth over the coming year and 360 Capital will help execute this.