OYSTER’S INVESTMENT PHILOSOPHY

Oyster’s investment philosophy focuses on transacting on quality assets in strong urban locations, combined with reputable tenants and long-term leases and managing these assets effectively via our in-house asset & facilities management teams to maximise investment returns.

Oyster aims to provide stable monthly returns to their investors with the potential for long-term capital gain.

 

Getting Started

  • 1

    Review our latest offers.

  • 2

    Register your name and contact details to the appropriate offer.

    You can also register your details to receive information on future investment opportunities.

  • 3

    Once an offer is available, read the Information Memorandum or Product Disclosure Statement, and contact us if you have any queries.

  • 4

    Return your application form, certified customer due diligence / AML documentation and make your payment.

  • 5

    We will confirm once your application has been accepted and inform you of when your returns commence.

 

Learn More

An unlisted property fund is a form of investment that provides investors with the opportunity to gain access to commercial property assets through an investment within a fund, ultimately enabling a group of investors to collectively purchase large-scale quality commercial property that they may not have access to otherwise.

Unlisted property funds offer a more regular income stream than share market-listed property funds – the funds offer cash returns paid monthly. This creates a steady stream of income that can supplement an investor’s lifestyle or, in some cases, be reinvested to compound returns.

Oyster’s investment vehicles are unlisted and are often preferred by investors who wish to receive monthly distributions and/or prefer to avoid the volatility of the share market. Unlisted investments can provide further diversification to an existing property portfolio of listed investments.

Generally, investments with Oyster are for an indefinite period. Depending on the structure of the investment, in the case of a proportionate ownership scheme or companies, investors may be able exist their investment through Oyster’s secondary market facility subject to being able to find a buyer and agree a re-sale price. If the building(s) were sold, all investors would be paid out their proportionate share of the scheme’s equity after all costs, including any capital gain.

Oyster aims to provide liquidity to investors whatever their reason for wanting to part ways with their investment. Due to our extensive investor database and investor relationships, generally commitment for interest re-sales can occur in a matter of days with settlement to be agreed mutually between the buyer and seller. The secondary market is largely underpinned by the performance of the investment at the time.

For Oyster’s Direct Property Fund, the fund accepts monthly redemption requests payable in the following month subject to the fund's monthly available funds.

Oyster’s Direct Property Fund has a minimum investment of NZ$10,000 and multiples of NZ$1,000 thereafter. Single or dual asset proportionate ownership schemes can be NZ$50,000 per interest (retail offer) and NZ$750,000 - NZ$1,000,000 per interest (wholesale offers).

The amount per interest and minimum investment will be detailed in either the Product Disclosure Statement or the Information Memorandum that relates to the investment opportunity.

The projected level of return is determined on a case-by-case basis and will be provided to you for consideration of an investment opportunity.

The projected returns are stated on a pre-tax and per annum basis however all distributions are paid monthly to investors.

Oyster can explain the information contained in the Product Disclosure Statement or Information Memorandum however the decision to invest ultimately sits with the investor.

Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser which considers their personal circumstances before making an investment decision.

Oyster is licensed to manage Other Managed Investment Schemes; which are Property Syndicates/Real Property Proportionate Ownership Schemes, and Managed Investment Schemes – Managed Funds; where the Managed Funds are invested solely in real property (listed and unlisted).

In retail offers, a supervisor is required to hold the assets of each scheme as custodian so that the property cannot be disposed of without the supervisor’s consent. The supervisor conducts all scheme meetings and Oyster are required to report to the supervisor each quarter and provide annual financial statements. The supervisor can investigate issues through their own findings, on behalf of investors or undertake investigations on behalf of the FMA. The main benefit of having a supervisor is that they monitor Oyster and ensure the schemes’ assets are protected and that requirements of the governing document and the Financial Markets Conduct Act are adhered to. Typically, Oyster’s retail offers have a minimum investment of NZ$50,000 (or NZ$10,000 in the case of the Oyster Direct Property Fund).

Wholesale offers do not provide the same level of protection for investors and on this basis require an investor to have a minimum investment in existing financial products, minimum net assets or business expertise in investing in financial products. Investors who invest NZ$750,000 or more do not have to satisfy any criteria. If investors do not meet the wholesale investor requirements, they may be able to apply as an eligible investor and provide a written statement supporting their grounds for investing supported by their chartered accountant, solicitor or authorised financial adviser. Typically, Oyster’s wholesale offers will be a minimum of NZ$750,000.

Liquidity Risks - Depending on market conditions it may be difficult or take some time to sell an interest(s) in a scheme. The re-sale price achieved would also be dependent on market conditions. Properties are independently valued either six monthly or annually which means that the value of the property investment may decrease or increase markedly, if the entire property was to be sold, the property market conditions at the time would largely dictate the price that could be achieved and how long it would take to sell the entire property.

Bank Loan Risk - This is usually the largest expense for a property owner. Changes in interest rates can have a material impact on the distribution. Changes in the interest rate charged on bank funding can have a material impact on a scheme or funds’ operating expenses. Interest rate risk can be managed by fixing the interest rate for a period on all or part of a loan. Oyster regularly reviews the bank loans and assesses whether fixing interest rates are of benefit. Fixing interest rates rather than using a floating rate provides certainty as to the interest expense over the period that the rate is fixed.

Property Related Risk - Oyster invests in physical assets which can require substantial repairs and maintenance, or can be destroyed by fire or earthquake and the income from the property or properties is often reliant on a few major tenants paying rent. Unforeseen maintenance, structural repairs or works of a capital nature, which the landlord is responsible for, could be difficult to fund from working capital; if this eventuated, bank borrowings and/or a reduction in distributions might be required.

Oyster carry out detailed annual budgeting each year to minimise unforeseen expenditure and regularly review the lifecycle of a building's plant and machinery such as lifts and air-conditioning. Oyster have insurance in place (including loss of rents) if a building is impacted by a fire, earthquake or other event.

Tenant Default - A principal risk of commercial property investment is that a tenant (or tenants) will be unable to, or may chose not to, pay rent and outgoings under their lease which would ultimately reduce the income return on the investment. Reduced rental can be significant as this will reduce cash distributions to investors and may impact the value of the property investment too.

Oyster undertake credit checks on new tenants and obtain personal guarantees or bank guarantees from tenants (where possible).