While residential assets may be the more familiar property investment option in New Zealand, unlisted commercial property funds offer an alternative to real estate ownership in a sector that’s presenting exciting growth opportunities as the country’s commercial environment evolves.

Oyster Property Group is one of New Zealand’s leading unlisted property fund managers and for more than 20 years has provide Kiwis with easy access to commercial property investment opportunities.

With $1.8 billion in assets under management, Oyster purchases quality properties of significant scale in the office, industrial, and large-format retail sectors, then executes strategies on behalf of its investors to deliver monthly income and potential for long-term capital growth.

Oyster Property Group’s general manager – property, Fabio Pagano, says it’s Oyster’s robust in-house management capabilities and value-add strategies that appeal to investors.

“Oyster investors are diversifying their portfolios with institutional quality real estate assets that are managed by experts and supported by long-term strategies to maximise their value,” he says.

“We don’t just buy assets and sit on them – we’re active fund managers. A big part of this is the development and delivery of business plans designed to extract optimal returns from each property we manage on our investors’ behalf.”

Eye On Future

Property is a long-term play for investors and a future-focused approach is critical.

“Our investment philosophy is to acquire quality, well-located properties in resilient sectors with robust long-term outlooks. Oyster’s expertise lies in industrial, office, and large-format retail. We then actively seek opportunities to increase the value of the asset over time. So, while the investment is passive for our investors, it’s anything but for the team at Oyster.

“The way we work, live and play in New Zealand is evolving at pace – our focus is on positioning our properties to meet the needs of businesses, tenants and wider New Zealand, well into the future.

“Alongside maximising our properties as they currently stand, we’re looking ahead to emerging property, infrastructure, work and lifestyle trends, alongside the master plans for NZ’s major economic regions to ensure our assets are positioned to take advantage of further income and capital growth opportunities.

“Our strategies aim to maximise leasing potential and income, asset usage, resilience, unitary plan alignment, capital value, and future sale potential. It’s these factors that come together to optimise total returns for our investors.”

The multi-use commercial developments and premium office parks in the Oyster portfolio demonstrate these strategies in action. Take the Central Park precinct in Ellerslie, for example.

Once a tired, underutilised business park, but with droves of latent potential, Central Park has evolved into one of New Zealand’s largest mixed-use commercial developments through a value-add strategy under Oyster’s management.

Value Delivered

Born out of a partnership between Oyster and global investment firm KKR, Central Park is paving the way for the future of “live-work-play” precincts in the Auckland region and delivering significant value to its investors, the 3,000 people who work there, and the community.

Today, the asset houses Bunnings, Bidfood, Turners & Growers, Estée Lauder, Waka Kotahi NZ Transport Agency, and KiwiRail.

The value-add strategy has delivered an aggressive leasing programme to lift occupancy to 95 per cent and drive rental growth, an award-winning partnership with KiwiRail, which has established its Auckland Rail Operations Centre, and new income streams.

Two extra residential developments and hotel accommodation highlight the gravitation towards mixed-use precincts - and there’s further growth ahead, with successful consenting for titles, subdivision rights, and change-of-use already completed.

Oyster has also transformed the Millennium Centre business park into a vibrant, modern, green working environment that’s attracted Loreal, Z Energy, Griffins, Toyota, Adidas, EnviroWaste and Siemens as tenants.

Pagano says Oyster’s sustainability strategy plays a critical role in unlocking future value for investors through resilient, future-proof assets.

For more information on the Oyster Property Group portfolio and current investment opportunities: www.oystergroup.co.nz