In April 2016 Oyster launched a new unlisted property fund, the Oyster Direct Property Fund, structured to provide investors with monthly income from a diversified portfolio of quality commercial property assets located throughout New Zealand.
The Oyster Direct Property Fund is part of Oyster’s strategy to expand its suite of products to meet the investment appetites of a broader range of investors.
The Fund offers investors an attractive opportunity to have diversified exposure to high quality direct property assets of significant value and scale spanning the retail, office and industrial sectors.
When launched, the Oyster Direct Property Fund offered investors diversified exposure to $240 million in quality commercial property. It aims to provide investors with a monthly tax advantaged income stream with current distributions being equivalent to 7% per annum pre-tax.
The Fund is structured as a Portfolio Investment Entity (PIE), with a minimum investment of $10,000 and increments of $1,000 thereafter. It targets a portfolio weighted towards major urban locations, quality tenants and long lease terms.
The Fund offers a Distribution Reinvestment Plan for investors who would prefer to purchase units each month rather than receiving the distribution.
A major objective of the Fund was to make participation in commercial property ownership achievable for as many investors as possible and with a relatively affordable entry point, a well diversified property portfolio and the benefit of tax-advantaged monthly income, the Fund demonstrated wide appeal from inception.
Oyster will continually grow the open ended fund, providing existing and new investors with an ongoing opportunity to invest. The Fund has positions in existing Oyster commercial property syndicates and will purchase interests in new property which meets the investment criteria, and purchase appropriate properties outright.
Interested investors can contact Oyster at any time to receive the Oyster Direct Property Fund Product Disclosure Statement.
The Fund offers investors an attractive opportunity to have diversiﬁed exposure to high quality direct property assets of signiﬁcant value and scale spanning the retail, ofﬁce and industrial sectors.