NZX Ltd-owned research & rating agency FundSource Ltd has given Oyster Property Group Ltd’s Direct Property Fund an AA rating – the first for an unlisted direct property fund in New Zealand.
Oyster chief executive Mark Schiele said yesterday: “This puts the Oyster Direct Property Fund in the top 5% of 64 funds currently rated by the research house. We view this as solid independent confirmation of the fund’s structure & performance. It should be very helpful for investors when assessing their investment options.”
Oyster launched the unlisted PIE-structured unit trust in 2016 to hold a diversified commercial property investment portfolio, giving investors an affordable way of investing in the commercial property market.
Mr Schiele said the fund had a value of about $40 million after doubling in size in the last 18 months.
“The fund provides investors with diversified exposure to about $500 million in quality commercial property throughout New Zealand, monthly cash distributions or the ability to reinvest, and the potential for capital growth.”
The minimum investment into the fund is $10,000. Since it was launched, it’s paid investors a distribution equivalent to 7c/unit/year. The initial unit price was $1.00 and at 31 January it was $1.037.
Attribution: Company release.