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Oyster’s Direct Property Fund exposes investors to over $670 million in quality commercial property. Photos/Supplied.

How a commercial property investment can pay off

Oyster gives people the opportunity to invest in a diversified way across quality commercial property assets.

In today’s low-yield environment, the returns on term deposits and government bonds are continuing to decline and the possibility of negative interest rates is being discussed in a mainstream way. External factors, including geo-political issues, are amplifying volatility in the stock market. However, despite these headwinds, here in New Zealand, returns on commercial property remain strong, and provide a healthy opportunity for both new and experienced investors.

Oyster’s Direct Property Fund (DPF) provides investors with the opportunity to invest in a diversified way across quality commercial property assets. With exposure to over $670 million in assets, the DPF invests in office, industrial and retail properties. It aims to provide a broad range of investors with a stable monthly income stream, combined with the potential for capital growth. This tax efficient PIE fund targets a portfolio weighted towards major urban locations, quality tenants and long leases.

With a $10,000 minimum investment, the DPF offers a relatively low entry point. Thereafter, you can invest as little or as much as you want in $1,000 increments. Investors are given the option to be paid a monthly cash distribution, or to reinvest the distribution in additional units to compound returns.

This year, the Reserve Bank has cut the Official Cash Rate to a record low, bank rates have tumbled, and many investors are now looking for alternatives to term deposits. Oyster continues to hear from investors seeking options to achieve higher, yet stable, investment yields. Most are comfortable with commercial property and are particularly attracted to returns derived from a quality diversified portfolio which the DPF offers.

Oyster has expertise in property fund structuring and equity raising, and currently manages over 20 property funds structured for retail and wholesale investors including the diversified Oyster Direct Property Fund. The company manages a range of retail, office and industrial assets throughout New Zealand with a combined value in excess of $1.7 billion.

Related article: Why now is the time to invest in commercial property

For more information, or to invest in the Oyster Direct Property Fund, visit oystergroup.co.nz