Fund reopens after first equity raise fully subscribed
Leading New Zealand commercial property fund manager Oyster has reopened the industrial fund, Oyster Industrial Limited.
Oyster Industrial was launched in October 2019, initially acquiring two recently built industrial properties in Wiri, Auckland. 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.
Rich Lyons, Capital Sourcing
Manager at Oyster, confirmed Oyster Industrial has contracted to purchase three additional industrial properties this year and the fund’s second equity raise commenced earlier this month.
“We are pleased to confirm that the fund’s first round of equity was fully subscribed ahead of the first settlement date of 29 January 2021.”
“The balance of the fund’s required equity for the remaining two property acquisitions is already 60% subscribed and based on the current uptake is likely to conclude well ahead of the fund’s anticipated settlement dates of 31 March 2021.”
Oyster Industrial is 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 Limited is managed by Oyster.
Oyster is marketing a total of 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.
Brodie Pritchard, Equity Raising Executive at Oyster 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.
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).
“Oyster Industrial’s multi-asset portfolio, long-lease profile, fixed rental growth and quality tenants has proven to be of great appeal to our investors to date”
Oyster Industrial is a limited liability company established as an openended unlisted property vehicle 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.
Abby Rowling, Equity Raising Executive at Oyster, has confirmed that the second equity raise has been well received to date by 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. Welllocated property, quality tenants and long lease terms are key fundamentals for investors and Oyster Industrial ticks these boxes.”
Oyster Industrial and its properties are managed by Oyster, whose assets have a combined value in excess of $1.9 billion.