Investors drawn to Oyster syndication
Exterior view of The NZ Racing Board's (NZRB) six storey building at 106-110 Jackson St, Petone.
Oyster Group's syndication of the New Zealand Racing Board's head office in Petone, Wellington, has closed fully subscribed, says Oyster's chief executive, Mark Schiele.
It is the second proportionate ownership scheme offered by the company in Wellington this year - both projecting 10 per annum pre-tax cash returns paid monthly.
Schiele says the company made available to investors 67 interests at $100,000 each in the six-storey building at 106-110 Jackson St.
The NZ Racing Board (NZRB) entered into new nine-year leases from August 2014 with two further three-year rights of renewal.
Schiele said factors that attracted investors and resulted in the successful syndication included the blue chip quality of the tenant, the length of the leases and forecast returns.
"Proportionate ownership of commercial property continues to allow groups of individuals to invest in assets of significant value and scale without the hassle of day-to-day management," he said.
The NZRB is the organisation behind national racing and betting, with more than 600 TABs nationwide.
The Jackson Street building was purpose-built for the NZRB in 1989. It occupies 3524 sq m of land, has a total floor area of 6290 sq m, a high car park ratio and a New Building Standard rating in excess of 70 per cent.
Oyster manages over $650 million in property throughout New Zealand.