Tauranga-based Property Managers Ltd (PML) executive director Denis McMahon and fellow core investors are launching a new unlisted fund that will focus on commercial property in the Bay of Plenty.
Pacific Property Fund (PPF) is targeting retail investors with an initial public offering of $7.8 million, which will primarily help fund the acquisition of Tui Products' new warehouse and office facility in Truman Lane, Mount Maunganui. The offer opens on October 29 and closes on December 18.
Mr McMahon, PPF's chairman, Philip Tushingham, a PPF director, and PML CEO Scott Mckenzie will co-invest $320,000 into the fund, which will be managed by PML.
"We like to have skin in the game and have always co-invested, but I don't think we will be the biggest shareholders," said Mr McMahon. "This will be a retail offering and we have our own significant client base. We know that there will be clients coming in that will invest significantly more than that."
James Beale, Craigs Investment Partners' head of investment management, who is a property specialist, said his firm preferred listed property vehicles that offered liquidity to investors via a freely tradeable market.