Oyster is pleased to present you with the third equity raise for Oyster Industrial.
Oyster Industrial is a limited liability company, established as an open-ended and PIE structured unlisted property vehicle. It aims to grow, through further acquisitions, a stable and diversified 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 income return to investors whilst providing the potential for long-term capital gain. Oyster Industrial has delivered exceptional returns to investors, providing a total return of 23.9% for the 12-month period to 31 July 2021 1 . The industrial sector has been the strongest performing asset class within the New Zealand property sector for the past 15 years 2 and continues to retain its appeal to investors due to its strong defensive qualities and sound occupier fundamentals which is supported by low vacancies, supply constraints of appropriately zoned industrial land and consistent rental growth.
Oyster Industrial has recently acquired 77 Westney Road located in Mangere, Auckland and as a result we are pleased to present you with the third equity raise. The additional property is a large-scale industrial facility that provides both warehouse and office accommodation to Cardinal Logistics Limited with a net lettable area of 10,314m², on a freehold title of 12,831m². The property sits to the rear of another Oyster Industrial property at 71 Westney Road also leased to Cardinal Logistics Limited.
Due to the strong investment fundamentals of the industrial asset class and fixed rental growth within this multi- asset portfolio, we believe this investment opportunity will continue to have strong investor appeal.
This premium investment opportunity is structured to have minimum investment of 50,000 shares ($57,000 at $1.14 per share), and with further investments in multiples of 50,000 shares thereafter. Oyster Industrial is forecasting a pre-tax cash return of 5.25 cents per share p.a. payable monthly, equating to 4.6% p.a. on the minimum investment of $57,000.
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With settlement of 77 Westney Road complete, the shares issued to the underwriters of the offer, are now available to purchase. All applications for shares will be processed on a first come, first served basis.
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The portfolio has been independently valued at $180.35 million providing a geographical spread of investments (by value) in Auckland and Wellington of 63% and 37% respectively. The Properties are 100% occupied and comprise 6 tenancies including multinational brands such as Plumbing World, Downer and Alto Packaging (Pact Group) along with Cardinal Logistics, a New Zealand owned and operated company providing dedicated warehousing of fast-moving consumer goods. The tenancies provide a combined weighted average lease term of 9.02 years (as at 31 October 2021) including fixed rental increases ranging from 1.4% to 3.0% per annum.
Oyster Industrial is managed by Oyster Management Limited, a leading New Zealand commercial property fund manager. The Manager manages a range of retail, office, and industrial assets throughout New Zealand, with a combined value in excess of $2.1 billion.
This PDS contains important information about this investment opportunity.