Oyster Industrial Q&A with Oyster’s Retail Investment Manager, Rich Lyons

14 April 2022   /   4 min read

What’s the latest investment opportunity from Oyster?

One of our most highly sought after offers Oyster Industrial Limited has just reopened for investment for the fourth time since launching in 2019. Oyster Industrial is an open-ended, PIE structured, unlisted property vehicle comprising six high-quality fully tenanted properties spread over Auckland and Wellington, with a total value of $186.7 million.

We are about to add two more strategically selected properties to the portfolio, one in Auckland and one in Canterbury which will provide further geographical and tenant diversification. The acquisition of these properties will bring the total value of the portfolio to $270,900,000.

How does Oyster choose properties to purchase?

We are highly selective about the properties we purchase on behalf of investors to ensure we create quality single-asset and multi-asset property portfolios.

For Oyster Industrial, we look for well-located industrial properties with high-quality tenants and long lease terms that complement the existing portfolio. For example, last year we purchased 77 Westney Road which neighbours 71 Westney Road – a property that is already part of the fund – to gain full control of two adjacent properties to maximise opportunities for re-leasing, development, or divestment in the future.

What makes industrial property an attractive investment?

Underpinned by continued low vacancies, continued rental growth and a limited supply of appropriately zoned land, industrial property has been the strongest performing asset class within the New Zealand commercial property market for the last 15 years1, proving itself to be highly resilient even in the face of significant economic disruption such as the COVID-19 pandemic.

These investment fundamentals, combined with stable monthly returns, the potential for capital gains and a strong weighted average lease term, quality tenants and diversified income stream are what makes the Oyster Industrial portfolio an enticing opportunity to investors.

How much does it cost to invest in Oyster Industrial – and what returns can I expect?

Since its inception, Oyster Industrial has consistently delivered strong results for investors, providing an annualised total return of 11.1 per cent since inception through to 31 December 20212. We are forecasting a pre-tax return of 5.25 cents per share to be paid out monthly3, equating to 4.41 per cent per annum4.

The minimum investment for Oyster Industrial is $59,500 for 50,000 shares at $1.19 per share. Investors may apply for one or more share parcels.

What’s the average lease term of the portfolio and who are the tenants?

The combined eight properties have an average lease term of 8.54 years and are tenanted by quality brands including Downer, Plumbing World, Alto Packaging, VIP Packaging, Cardinal Logistics and Hellers.

What’s the benefit of investing with Oyster?

Oyster has been a leading commercial property fund manager in New Zealand for more than 20 years. By choosing to invest with us, you will reap the benefits of a highly experienced team that delivers quality results to our investors by providing stable monthly returns and the potential for long-term capital gains through carefully curated, premium investment opportunities. Often new investors come to us after recommendations from their friends or family, which supports the trust investors have in our management and investments.   

At Oyster, we’re a fully integrated manager that provides a one-stop-shop service. We manage the entire lifecycle of commercial property in-house, from end-to-end. We’re continually assessing what investors are interested in, what they want to see and will derive value from.

You can learn more about the offer here or contact our team on 09 632 1287.

1 Source: MSCI as at 30 September 2021.
2 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.
3 The return is only an indicative forecast pre-tax cash return and is for the financial period ending 31 March 2023.
4 The minimum investment is $59,500 being 50,000 shares at $1.19 per share.

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