Property Managers Group has closed its $20 million PMG Direct Office Fund capital-raising fully subscribed.
The Tauranga-based syndicate manager bought 2 properties in Auckland & Hamilton for $29.74 million and has sold one of the fund’s existing 6 properties.
Those transactions take it to a 7-property portfolio worth $81 million. Property Managers set up the fund in 2016 and has stated its eventual target is a $250 million portfolio.
The 2 new properties are at 65B Main Highway, Ellerslie, valued at $21.8 million (just above purchase price), and 410 Victoria & 12 Alma St, Hamilton, valued at the purchase price of $8.1 million. The one sold is at 22 Amersham Way, Manukau.
Units in the fund were originally priced at $1. The new units were priced at $1.12. The forecast pretax gross distribution/unit/year on the new offer is 6.7% for the next 2 years, which equates to a 7.5% return on the original investment price of $1.
13 March 2019: PMG launches new issue for 2 acquisitions next week
Attribution: Company release.