Shortly after purchasing two Lower Hutt buildings from DNZ Property Fund, Oyster Group's syndication of the properties has been successfully oversubscribed.
Hamilton-based Oyster Group purchased the buildings for a combined total of $25.5 million earlier
Shortly after purchasing two Lower Hutt buildings from DNZ Property Fund, Oyster Group’s syndication of the properties has been successfully oversubscribed.
Hamilton-based Oyster Group purchased the buildings for a combined total of $25.5 million earlier this year.
The properties were a Bunnings Warehouse in Naenae which was completed in 2007, and the recently refurbished Colonial House on Lower Hutt’s High St with the Ministry of Social Development and Accident Compensation Corporation as tenants with eight year leases remaining each.
Real estate agency Bayleys marketed the syndication, which has a projected cash return of 8.9%. There were 118 $100,000 shares sold, and the offer was oversubscribed by $700,000.
Oyster Group managing director Mark Winter said it was heartening to see the syndicate sell down quickly, with the success reflecting the quality of the tenanted properties.
“Increasingly, people are after security from their hard-earned investment dollars and when the risk is spread across multiple properties and several tenants then the fundamentals really stack up," Mr Winter said.
