Simpson Grierson advises on merger of Pacific Property Fund and PMG Generation Fund, creating an integrated property fund with over $700 million of commercial real estate under investment.

Simpson Grierson is pleased to have advised on Pacific Property Fund Limited’s (PPF) merger with PMG Generation Fund (Generation) and the PPF’s associated $40 million capital raise. PMG manages both PPF's property portfolio and Generation.

Under the merger, PPF acquired 100% of the units in Generation from its unitholders, with those unitholders becoming shareholders in PPF in exchange for their units. The transaction brings the two retail funds together into a single, integrated commercial property fund.

The integrated property fund comprises a nationwide portfolio of 29 commercial properties valued at over $700 million, spanning industrial, large-format retail and office assets across New Zealand - described as New Zealand's largest diversified unlisted commercial property fund. The rationale for the merger was to create a larger, more diversified and more resilient commercial property vehicle, delivering greater scale, improved operational efficiency and enhanced potential for investor liquidity over time.

Simpson Grierson advised on the full implementation of the merger, including the Product Disclosure Statement, a new management agreement for PPF, the unit acquisition agreement, engaging with the statutory supervisor for Generation and the FMA to transition Generation to new trust arrangements and cancellation of Generation as a registered managed investment scheme, advising on meeting processes to approve the merger for both groups of investors, and assisting with refinancing of PPF and Generation’s banking facilities.

Michael Pollard, lead Corporate Partner said "This was a complex merger of two large retail funds that necessitated careful structuring and navigating regulatory requirements to deliver a fair, NAV-neutral outcome for investors in both funds while building a stronger, more diversified platform for the future"

The Simpson Grierson team included Partner Stuart Evans, Senior Associates Josiah Koh and Matthew Brew, and Solicitors Keanu Britton-Rua, Latesha Metzler, and Charlotte Holland.