Oyster Industrial to Grow

6 January 2021   /   4 min read

Leading New Zealand commercial property fund manager Oyster will re-open the industrial fund, Oyster Industrial Limited.

Oyster Industrial was launched in October 2019, initially acquiring two recently built industrial properties in Wiri, Auckland. The first equity raise was fully subscribed early. The launch of the industrial investment opportunity at the time allowed investors to participate in New Zealand’s top-performing property asset class at an affordable price point.

Mark Schiele, CEO at Oyster has confirmed Oyster Industrial has contracted to purchase three additional industrial properties early in the new year and expects to open the fund’s second equity raise in the coming week.

“We are very selective with the acquisitions for Oyster Industrial to ensure we are creating a quality multi-asset industrial property portfolio for our investors.”

“These new acquisitions add 3 significant properties with quality tenants and long-term leases, to the fund.”

Oyster Industrial will be 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 5.10% on the minimum investment of $51,500 (50,000 shares). Oyster Industrial will be managed by Oyster.

Oyster will shortly market 1,177 additional parcels of shares in the company, each comprised of 50,000 shares, priced at $1.03 per share. Investors can tailor their investment by applying for one or more parcels.

Rich Lyons, Capital Sourcing Manager at Oyster said Oyster Industrial represents a premium investment opportunity, underpinned by property that has been part of the strongest performing asset class within the wider New Zealand property market in recent years.

“Industrial property has experienced record low vacancies, continued rental growth and a limited supply of appropriately zoned land.  It has proved particularly resilient throughout the Covid-19 pandemic.”

The Oyster Industrial properties are 100% occupied and following the new acquisitions, it will provide a combined weighted average lease term of 9.8 years (as at March 2021), fixed rental growth ranging from 1.4% to 3.0% per annum and leases to national and multinational tenants such as Plumbing World, Downer and Alto Packaging (Pact Group).

Lyons says 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, create a highly sought-after investment opportunity.

“Following the next round of acquisitions, the fund will provide combined exposure to five industrial assets valued at almost $140 million.”

Oyster Industrial is a limited liability company established as an open-ended unlisted property fund with the aim to grow, through further acquisitions, a multi-asset portfolio of industrial real estate.

Targeted investments will provide tenant and property diversification within the industrial sector. A key objective for Oyster Industrial is delivering a stable monthly return to investors whilst providing the potential for long-term capital gain.

Brodie Pritchard, Equity Raising Executive at Oyster, expects the fund’s second equity raise will continue to have broad appeal for a wide range of new and existing investors.

“Unlisted commercial property investments can provide regular monthly returns to investors and the current low interest environment continues to fuel demand for our investments. Well-located property, quality tenants and long lease terms are key fundamentals for investors and Oyster Industrial ticks these boxes.”

“Investor enquiry for new investment remains strong with many of the fund’s existing investors expressing their appetite to reinvest at the next available opportunity, along with our wider investor base.”

Oyster Industrial and its properties are managed by Oyster – a leading New Zealand commercial property and fund manager. Oyster manages a range of retail, office and industrial assets throughout New Zealand, with a combined value in excess of $1.9 billion.

The company has expertise in property fund structuring and equity raising, and currently manages more than 20 property funds structured for retail and wholesale investors including the diversified Oyster Direct Property Fund.

Oyster Industrial is now open for investment. You can register your interest to automatically receive a copy of the product disclosure statement.

The Product Disclosure Statement, once prepared, will contain details of how the projected return on investment will be calculated. The forecast return will be based on any principle assumptions and methods of calculation described in the Product Disclosure Statement. Prospective Investors are recommended to seek professional advice from a financial adviser which considers their personal circumstances before making an investment decision. 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 the company.

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