Oyster's Albany syndication closes fully subscribed

Oyster Group successfully syndicated this ANZ Business Centre at 9 Corinthian Drive, Albany.

Oyster Group's syndication of the ANZ Business Centre at 9 Corinthian Drive in Albany has closed fully subscribed with equity raised of $15.6 million.

The five level, 5579 sq m office and retail property was marketed by Oyster in partnership with Charlie Oscroft and Tim Lichtenstein of Colliers International.

Oyster's chief executive officer Mark Schiele says the $27 million property drew considerable interest from both existing and new investors.

"The ANZ Business Centre offer is the second syndication Oyster has undertaken with a minimum investment level of $50,000 and this was primarily done to open up the opportunity to a greater pool of investors," Schiele says.

"Our recent syndications have allowed new investors, with a relatively modest level of capital, to participate in the ownership in high quality commercial property of significant scale, and to benefit from monthly income distributions."

Oyster gained 67 new investors, who represented 52 per cent of the total number of investors participating in the offer. In Oyster's previous syndication of the large Cardinal Logistics warehouse near Auckland airport, the company gained 77 new investors, representing 57 per cent of those investors who participated in the scheme.

In the ANZ Business Centre scheme, Oyster made available 312 interests of $50,000 each, projecting pre-tax cash returns of 8.25 per cent to be paid monthly.

Mark Schiele, CEO Oyster Group

ANZ, the anchor tenant, has entered into a new nine-year lease, with a further six-year right of renewal in the modern complex which comprises two levels of car parking, ground level retail and three upper office levels.

The building, which dominates the 5579 sq m property, is 100 per cent leased to a mix of prime office and convenience retail tenants including ANZ, the NZ Government (Ministry of Justice and Department of Labour), Lumley Insurance, Burger Fuel, Pizza Hut, Nando's and St Pierre's Sushi.

Schiele says the Corinthian Drive property's location, in the growth hub of Albany, had strong appeal for investors.

"There is growing investor appetite for blue-chip commercial property which is well located with reputable tenants. In this case, approximately 70 per cent of the ANZ Centre's income is derived from two major financial institutions as well as government tenants."

Oyster manages over $750 million of commercial property assets through a combination of private property syndicates and institutional property management mandates.