There are quality investment options in today’s buoyant market - Mark Schiele, CEO of Oyster Property Group, details the benefits of investing in unlisted property funds.
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.
The company’s success is driven by its discipline in property purchasing. Oyster’s property acquisitions focus on major Metropolitan locations that experience natural land value appreciation, and properties which have enduring occupier demand.
Oyster pride themselves on their in-house asset management expertise with a strong focus on tenant relationships and renewal of existing leases, managing upcoming or potential vacancies and optimising rental income. Properties are tangible assets, and therefore require active management to ensure investment performance is maintained through all cycles.
What is an unlisted property fund?
An unlisted property fund is a form of investment that provides investors with the opportunity to gain access to commercial property assets through an investment within a fund, ultimately enabling a group of investors to collectively purchase large-scale quality commercial property that they may not have access to otherwise.
What are the benefits of investing in unlisted property funds?
One of the great appeals is that unlisted property funds offer a more regular income stream than share market-listed property funds - the funds offer stable returns paid monthly, which is rent paid by the tenants. This creates a steady stream of income that can supplement an investor’s lifestyle or, in some cases, be reinvested to compound returns. Furthermore, there is the potential for long-term capital gains.
Unlisted property funds also make entering into the commercial property market accessible. The upfront investment is a relatively low entry point compared to buying a commercial property yourself (and potentially having to manage it).
Unlisted property funds are less exposed to market events and public sentiment than share market-listed property funds, and the value of the investment is usually more closely aligned with the performance of the asset.
The added benefit of investing with Oyster Property Group is that our company is part of the process from the very beginning and throughout, rather than having management outsourced to a third party.
The appeal of commercial property investment in New Zealand is driving strong growth. The sector’s strength comes down to high demand for quality investments, as well as good occupier demand across most sectors.
For more information on Oyster’s next commercial property investment opportunity, visit oystergroup.co.nz