Oyster's latest offer promises 8.4% return

Commercial property’s robust returns are proving popular in the current low interest rate environment.

Monday, December 7th 2015, 8:25PM

by The Landlord

Oyster Group’s recent proportionate ownership investment offerings have been proof of that.

The commercial property company’s two latest property offerings - the Westpac building in Albany and Countdown Lincoln Road – were in high demand and over-subscribed within days of notification.

Oyster Group CEO Mark Schiele said investor appetite for quality commercial property is particularly strong in the current interest rate environment.

“With historically low interest rates seemingly here for the medium term, investors are seeking alternative options for income.

“We know commercial property returns are increasingly seen by many investors as an attractive complement to lower bank deposit rates.”

For this reason, the company’s latest proportionate ownership offering – the $23 million Home Straight Business Park in Hamilton – is also likely to prove attractive to investors.

It is forecast to provide investors with a pre-tax cash return of 8.4% a year, paid monthly, and requires a minimum investment of $50,000 per interest. There are 255 individual interests available.

The property currently returns just over $1.7 million in net annual income.

Schiele said the offer, which is the company’s second public property syndication scheme this year, will be keenly sought by both existing and new investors.

”With interests at $50,000 each there is strong demand, and the projected pre-tax cash return is very attractive for this type of investment.

“This is a high quality asset, with diversified income streams from strong tenants. We see Hamilton as a growth area and have always enjoyed strong investor support for property in the region.”

The Oyster Group currently has a focus on making commercial property investment accessible to as many investors as possible.

This includes those with a relatively modest level of capital investment through to those with substantial, individual investment sums.

Schiele said the inherent qualities of commercial property act as a reliable store of wealth over the longer term.

“Oyster has a strong track record of well-located assets which have historically proven robust through changing economic cycles.”

The Home Straight property is being marketed directly by Oyster to its investor base and through Colliers International.

The equity raise for the property opened a week ago and is already half full. To register interest or receive a copy of the Investment Statement contact the Oyster Group.

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