Investors have snapped up 276 interests worth $50,000 each in the Oyster Group’s syndication of the Cardinal Logistics warehouse building near Auckland Airport.
The proportionate ownership scheme is projecting cash returns of 8.1% pre-tax per annum, paid monthly. The syndication was oversubscribed and closed early says Oyster group.
The groups chief executive, Mark Schiele, says the 2.1397 hectare freehold land holding is located within the sought after Auckland Airport industrial precinct.
Schiele says the combination of elements which attracted investors included the location, length of lease, projected returns and built in rental growth.
The building is 100% leased to Cardinal Logistics on a new, 15 year net lease plus three further five-year rights of renewal.
Cardinal is a logistics provider to the FMCG industry and its customers including Griffins, ETA, Red Bull, Mars NZ, Asaleo Health and General Mills.
Schiele says proportionate ownership of commercial property attracts groups of individuals looking to invest in assets of significant value and scale without the hassle of day-to-day management.
Oyster Group now manages more than $700 million in property throughout New Zealand.
