Oyster Group’s Direct Property Fund is the first unlisted direct property fund in New Zealand to be given an ‘AA’ rating by FundSource.
This puts the Oyster Direct Property Fund (DPF) in the top 5% of 64 funds currently rated by the research house. NZX owned, FundSource supplies independent research and data to financial advisors and fund managers in New Zealand.
Oyster Chief Executive Mark Schiele says the company is very pleased with the rating result, given that the Fund was only launched in mid-2016.
“We view this as solid independent confirmation of the DPF’s structure and performance. It should be very helpful for investors when assessing their investment options.”
Launched in 2016, the unlisted PIE structured unit trust was set up to hold a diversified commercial property investment portfolio providing investors an affordable way of investing in the commercial property market.
Schiele says the fund has a value of around NZD $40 million, having more than doubled in size in the past 18 months. It continues to grow each month through further investment.
“The DPF provides investors with diversified exposure to approximately $500 million in quality commercial property throughout New Zealand, monthly cash distributions or the ability to reinvest, and the potential for capital growth.”
The minimum investment into the Fund is $10,000. Since it was launched, the Fund has been providing investors a distribution equivalent to 7 cents per unit per annum. The initial unit price was $1.00 and as at 31 January 2018, it was $1.037.
“This is a great opportunity for investors to receive a strong return on their capital, build wealth and spread their exposure to high quality commercial property spanning the retail, office and industrial sectors.”
Schiele says the funds’ strategy is to invest in a range of commercial properties that fit the criteria and investment mandate which covers major urban locations, long-lease terms and quality tenant covenants.
“Our intention is to continue to progressively grow the fund providing investors with ongoing opportunities to invest.
“We want participation in commercial property ownership to be achievable for as many people as possible and we expect the Oyster Direct Property Fund to continue to have wide appeal.”
Schiele says the rating by FundSource provided a great start to 2018 year for Oyster, following on from the successful $112M capital raising last year for the Millennium Centre Business Park which was the largest ever single property equity raise in New Zealand.
“We will continue to adapt and grow our suite of products and offers to meet differing investor profiles and investment needs.”
Oyster Group provides professional property and funds management to retail, commercial and industrial property owners and investors. Oyster currently manages 21 proportionate ownership schemes (mix of both retail and wholesale investments) and the Oyster Direct Property Fund (DPF).
The organisation manages a diversified range of commercial property throughout New Zealand, with a combined portfolio value of around NZ$1.2B. Oyster’s investment team comprises specialists in transactions, asset and property management, development and finance.
Oyster Group is 50% owned by Australian-based ASX listed Cromwell Property Group.
For further information:
M: 027 294 0823