May 19 2016
Investors Grab Cider Offer
Investors have snapped up a ‘million dollar’ opportunity to own interests in Oyster Group’s Cider Building syndication
which has closed early, oversubscribed.
A total of 50 interests of $1,000,000 each were made available to wholesale investors only, with a projected pre-tax
return of 7.5% per annum. Oyster marketed the interests in conjunction with Tim Lichtenstein and Charlie Oscroft from
Colliers International’s Syndications division.
The high profile property, on the corner of Williamson Avenue and Pollen Street in the central Auckland suburb of
Ponsonby, is anchored by a 20-year lease to General Distributors, with additional tenanted commercial space and street
level retail.
Mark Schiele, Oyster’s chief executive officer, says the successful syndication was the company’s largest-ever single
equity raise under a multi investor ownership structure.
“Oyster’s ability to raise $50 million of equity in one week demonstrates both demand for this type of quality
commercial property investment and investors’ confidence in our management expertise to optimise investor returns.
Property ownership structured for wholesale investors continues to be a very important part of our growing property and
funds management business.”
The Cider building is nearly complete and is a 13,200m² mixed use retail and office development, which is a key point of
difference in city-fringe commercial investment-grade property. It comprises a new 4,000m² Countdown supermarket,
8,000m² of office space across three floors, 11 specialty retail tenancies over 900m² along Williamson Avenue and
Ponsonby Road, and around 520 basement carparks.
Cider has been developed by Progressive Enterprises and will be 100% leased to General Distributors Limited (Countdown),
Fairfax NZ Limited (on a 12 year lease) and convenience retail.
Oyster purchased the property at a yield of 6.74%, equating to a purchase price of approximately $93 million, with
settlement due in June 2016.
Schiele says the combination of elements which attracted wholesale investors and resulted in a rapid successful
syndication included the high profile tenants, a landmark new building and an outstanding location in a sought-after
residential catchment.
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