Leading commercial property fund manager, Oyster Property Group, is reopening its sought-after industrial vehicle, giving investors access to the highly resilient asset class for the fourth time.
Oyster Industrial Limited, which has seen a consistent level of investor demand since it launched in 2019, has delivered strong results for investors, providing an annualised total return of 11.1 per cent since inception through to 31 December 2021.*
Oyster’s Chief Executive, Mark Schiele, says industrial property has been the strongest performing asset class within the New Zealand commercial property market over the last 15 years** and confidence in the sector remains high.
“Oyster Industrial represents a premium investment opportunity for investors to access an asset class with strong defensive qualities and bolstered by low vacancies, consistent rental growth and limited supply of appropriately zoned land.
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“Performance of Oyster Industrial has remained solid over the past two years in the face of significant economic disruption caused by the COVID-19 pandemic, reinforcing the stability of the industrial asset class in uncertain times,” he adds.
Oyster will be offering 822 parcels of 50,000 shares per parcel, at $59,500 each.*** Investors may apply for one or more share parcels.
Oyster Industrial is forecasting a pre-tax return of 5.25 cents per share to be paid out monthly, equating to 4.41 per cent per annum.****
The vehicle’s high quality industrial portfolio currently contains six fully tenanted, industrial assets located in Auckland and Wellington. This fourth equity raise will fund the acquisition of two further industrial properties, 67 Main North Road in Kaiapoi, Canterbury, which is a large-scale food product facility on a freehold title and fully leased to Hellers Limited, and 100 Harris Road in East Tamaki, Auckland, which is fully leased to VIP Packaging (NZ) Limited, a rigid plastic packaging manufacturer ultimately owned by ASX-listed Pact Group Holdings Limited. These acquisitions provide Oyster Industrial with further geographical and tenant diversification and an industrial property portfolio valued at $270,900,000.
Oyster’s Retail Investment Manager, Rich Lyons, says, “The combined eight properties provide a diversified income stream and a strong weighted average lease term of 8.54 years, making the Oyster Industrial portfolio an enticing diversified investment opportunity for investors.
“Across the portfolio, properties are tenanted to quality brands including Downer, Plumbing World, Cardinal Logistics, and Hellers a tenant in our next commercial property acquisition,” says Rich.
Schiele says, “With the current supply and demand dynamics in the industrial sector, we are confident in Oyster Industrial’s ability to deliver stable returns alongside the potential for capital gain.
“The targeted acquisition of these two industrial assets, along with the existing portfolio, provide an investment opportunity in a sought-after asset class with a diversified income stream and quality tenants.“
For more information on Oyster and this investment opportunity, visit oystergroup.co.nz/invest
The offer
Oyster Industrial Ltd will be offering investors the opportunity to acquire shares in Oyster Industrial Ltd, the owner of the land and buildings at:
• 12 Harbour Ridge Drive, Wiri, Auckland
• 101 McLaughlins Road, Wiri, Auckland
• 71 Westney Road, Māngere, Auckland
• 77 Westney Road, Māngere, Auckland
• 14-16 Makaro Street, Porirua, Wellington
• 75 Wainui Road, Lower Hutt, Wellington
Additionally, Oyster Industrial Ltd has contracted to acquire the land and buildings at:
• 67 Main North Road, Kaiapoi, Canterbury
• 100 Harris Road, East Tāmaki, Auckland*****
Key financials******
• Combined Valuations: $270,900,000
• Net Rental p.a.: $12,810,858
• Loan to Value Ratio: 46.74%
• Investment Size: $59,500 per parcel of shares
• Total Share Parcels on Offer: 822
• Forecasting Pre-tax return of 4.41% p.a.
Please visit oystergroup.co.nz/oil to receive the Product Disclosure Statement once available.
No money is currently being sought. No financial products can currently be applied for or acquired under the intended offer. Any offer will be made in accordance with the Financial Markets Conduct Act 2013. An expression of interest is not an obligation or commitment to acquire shares in this investment.
* Calculated from 21 October 2019 to 31 December 2021 based on the net asset value per share (including the 31 December 2021 valuations) and dividends paid during the period. Past performance is no indication or guarantee of future performance.
** Source: MSCI as at 30 September 2021.
*** The minimum investment will be $59,500 being 50,000 shares at $1.19 per share.
**** The return is only an indicative forecast pre-tax cash return and is for the financial period ending 31 March 2023.
***** The acquisition of 100 Harris Road is subject to certain conditions being met. Further details will be in the Product Disclosure Statement.
****** As at 29 April 2022 on acquisition of 67 Main North Road, Kaiapoi, Canterbury and 100 Harris Road, East Tamaki, Auckland.
