Oyster Property Group Ltd has closed its Home Straight Park proportionate ownership scheme fully subscribed.
Oyster sought $39.45 million from investors and has a $34.75 million term loan covering 47% of the $74.2 million total purchase cost.
Ownership interests were offered at a minimum $50,000, with a 6%/year forecast pretax cash distribution.
The property comprises 3 buildings on 2.9ha in 3 titles at 17, 19 & 21 Home Straight, across Te Rapa Rd from the Te Rapa racecourse, Hamilton. Total net lettable area is 14,738m². The first 2 buildings were developed in 2012 and the third in 2018.
The 3 biggest tenants, Fonterra Group subsidiary RD1 Ltd & 2 Government tenants, Inland Revenue & the Ministry of Education, provide 67% of income.
The combined weighted average lease term for all 11 tenants is 5.75 years.
4 March 2020: Oyster signals next investment scheme at Te Rapa
Attribution: Company release.