Mega appetite for Mitre 10 scheme

The Mitre 10 Mega store at 186 Lincoln Rd, Henderson. Photo / Spplied

Oversubscribed syndication snaps shut.

Oyster Group's syndication of the Mitre 10 Mega on a 2.7ha site at 186 Lincoln Rd, Henderson, has closed substantially over-subscribed.

It is the second Mitre 10 proportionate-ownership scheme offered by the company this year, with the first in Pukekohe also closing early - again because of over-subscription.

Oyster chief executive Mark Schiele said the company had made available to investors 140 shares at $100,000 each in Mitre 10's 14,000sq m flagship store in West Auckland.

The proportionate-ownership scheme projected an initial annual return of 9.22 per cent for investors.

According to Mitre 10 New Zealand, the operation is one of its top three performing stores in New Zealand. Mitre 10 will continue to occupy the building under its existing 15-year lease from 2004, with two rights of renewal of five years each.

Schiele said savvy investors were attracted to the superb location, built-in rental growth, a strong tenancy and solid business profile.

The investment scheme and property will be managed by Oyster, which manages more than $500 million in property nationwide.

Schiele said proportionate ownership allowed groups of individuals to invest in assets of significant value and scale, without the hassle of day-to-day management.