Investors drawn to latest Oyster Group syndication

Oyster Group’s syndication of the large Cardinal Logistics warehouse building at 71 Westney Road Mangere has closed early, oversubscribed. It was the third proportionate ownership scheme offered by the company in 2014, projecting cash returns of 8.1% pre-tax per annum, paid monthly.

Oyster Group chief executive, Mark Schiele, says the company made available to investors 276 interests at $50,000 each in the large 2.1397 hectare freehold land holding, within the sought after Auckland Airport industrial precinct.

The building is 100% leased to Cardinal Logistics on a new, 15 year net lease plus three further five-year rights of renewal. Cardinal is a leading logistics provider to the FMCG industry and its customers including Griffins, ETA, Red Bull, Mars NZ, Asaleo Health and General Mills.

Schiele says the combination of elements which attracted investors and resulted in the successful subscription included the location, length of lease, projected returns and built in rental growth.

"Oyster’s first syndication for this year, of the $27 million ANZ Business Centre at 9 Corinthian Drive in Albany, is also drawing significant interest from savvy investors. There are only 312 interests of $50,000 each available, offering pre-tax cash returns of 8.25%, paid monthly."

He says proportionate ownership of commercial property continued to be attractive for groups of individuals looking to invest in assets of significant value and scale without the hassle of day-to-day management. Oyster now manages over $700 million in property throughout New Zealand.