- This article was supplied by Oyster Property Group
Investors are to get a third shot at securing an investment in a premium industrial real estate fund that twice oversubscribed early due to overwhelming interest.
Leading New Zealand commercial property and fund manager, Oyster Property Group, has reopened Oyster Industrial to investors interested in a multi asset industrial property investment opportunity that provides monthly returns and the potential for long-term capital gain.
Investors were quick to snap up shares in Oyster Industrial when it first launched in October 2019, with two industrial properties in Wiri, Auckland, the first to be added to the portfolio.
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A second strong wave of interest came when the fund reopened earlier this year, allowing Oyster Industrial to purchase three more industrial properties to add into the mix.
Oyster Industrial has delivered exceptional returns to investors, providing a total return of 23.9% for the 12-month period to 31 July 2021.
Mark Schiele, Oyster CEO, said the fact that Oyster Industrial closed early twice reflected investors’ confidence in the industrial sector, which has been the strongest performing asset class within the New Zealand property sector for the past 15 years.
"To date, Oyster Industrial has experienced strong demand from investors with the initial and subsequent equity raises totalling $78 million both oversubscribed," he said.
“The sector continues to retain its appeal to investors due to its resilience – particularly during the COVID-19 pandemic – record low vacancies, consistent rental growth and a limited supply of appropriately zoned land."
This third equity raise will allow Oyster Industrial to purchase 77 Westney Road, a large-scale industrial facility located in Mangere, Auckland. The property also neighbours 71 Westney Road – a well-located property that is already part of the existing portfolio. This strategic purchase will provide a combined land holding across two freehold titles and has the potential to maximise opportunities for re-leasing, development or divestment in the future.
Schiele said: "We are very targeted about the properties we add to Oyster Industrial to ensure we are creating a quality multi-asset industrial property portfolio that continues to appeal to our investors.
“We are excited to offer this opportunity to investors to enable Oyster Industrial to acquire its sixth industrial asset, which will further grow the portfolio which aims to deliver a stable monthly return to shareholders and the potential for long-term capital gain."
Rich Lyons, Oyster Retail Investment Manager, said the investment fundamentals of the industrial asset class, combined with a strong weighted average lease term and fixed rental growth within the Oyster Industrial portfolio, created a highly sought-after investment opportunity for new investors and continued appeal for Oyster Industrial’s existing investors.
“The value of the Oyster Industrial portfolio has grown significantly through both further acquisitions and capital gains since Oyster Industrial’s inception. The portfolio, including 77 Westney Road, has been independently valued at $180.35 million," he said.
"Appetite for quality investment opportunities remains strong. In the case of Oyster Industrial, this has been well supported with approximately one quarter of investors reinvesting when we re-opened the fund earlier this year.
“The properties are 100% occupied and will comprise six tenancies, with leases to Downer New Zealand Ltd, Plumbing World Ltd, Alto Packaging Ltd, NBL (New Zealand) Ltd and Cardinal Logistics Ltd. All leases provide fixed rental increases ranging from 1.4% to 3.0% per annum and a weighted average lease term of 9.02 as at 31 October 2021.”
Oyster Industrial is forecasting a pre-tax cash return of 5.25 cents per share per annum for the financial period ending 31 March 2022, payable monthly, equating to 4.6% on the minimum investment of $57,000 (50,000 shares). Oyster Industrial Limited is the issuer of the shares.
A total of 321 parcels of shares are being offered and investors may apply for one or more parcels of shares.
Oyster Property Group
Oyster is a leading New Zealand commercial real estate property and fund manager. The company are experts in property fund structuring and equity raising and currently manages more than 20 property funds structured for retail and wholesale investors including Oyster Industrial, the Oyster Large Format Retail Fund and the diversified Oyster Direct Property Fund. Oyster partners with institutional capital and private equity investing in commercial property and holds management mandates with third party property owners across development, asset management, property and facilities management, and retail leasing. Oyster manages a range of retail, office and industrial assets throughout New Zealand, with a combined value in excess of NZ$2.1 billion. For more information, visit: oystergroup.co.nz.
