Syndication of award-winning tech hub closes early

The syndication of Auckland’s ASB C:Drive tech hub fully subscribed in just over two weeks

ASB Bank's award-winning C:Drive tech hub is being offered for syndication by Oyster Property Group

Oyster Property Group’s latest proportionate ownership scheme, comprising 585 individual $50,000 interests in C:Drive at 33 Corinthian Drive, Albany, Auckland, has closed early after being fully subscribed in just over two weeks.

The $29.25 million equity raise attracted strong demand from both existing and new Oyster investors, according to Chief Executive, Mark Schiele.

“One third of investors who participated in the offer were new to Oyster. The minimum investment of $50,000 opened the opportunity to a large pool of investors, and we were delighted to see so many new investors wanting ownership in a quality commercial property with a tenant of this calibre.”

The syndication scheme was marketed by Oyster in conjunction with Colliers International Syndications Director Charlie Oscroft and Associate Director Kris Ongley.

It is forecasted to provide investors with a pre-tax cash return of 6.5 per per annum, paid monthly.

The property, a large scale three-level standalone office building valued at $54 million, is located at the heart of Albany on Corinthian Drive and is 100 per cent leased to ASB Bank Limited.

The institutional-grade office investment property at 33 Corinthian Drive, in the high-growth North Shore suburb of Albany, was purpose-built for ASB Bank Limited in 2001.  

Schiele believes the offer had several attributes which had immediate appeal for investors.

“There has always been strong investor demand for quality commercial property which has outstanding tenant covenant and long-term leases.

“That, combined with the sought-after Auckland location and the projected pre-tax cash return, satisfied investor criteria.

“We’re obviously very pleased with the speed of the equity raise which reinforces investors’ significant appetite for high-quality commercial property.

“With historically low interest rates remaining on the horizon, investors continue to seek alternative options for income, and commercial property returns are increasingly seen by many as attractive.”

Schiele says 55 per cent of investors originated from Auckland, with Bay of Plenty and Waikato investors combined providing a further 25 per cent of the equity.  

The C:Drive property currently returns just under $3 million in net annual income from 10,248sq m of lettable area.

The property was settled on 1 April 2019.

Oyster will manage the property and the syndication scheme as part of its wider national portfolio of $1.5 billion of commercial property assets under management. 


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