Orion House Offer Closes Oversubscribed

For Immediate Release

March 18 2013

Orion House Offer Closes Oversubscribed

Oyster Group’s proportionate ownership opportunity in Orion House, Grafton, Auckland has closed more than one week early and over-subscribed.

It is the company’s first proportionate ownership opportunity for 2013.

Oyster Group made available 115 shares at $100,000 each in the 4,673sq m, three-level property in the popular fringe CBD commercial area, at 181 Grafton Road, Auckland. The interests were marketed with a projected initial pre-tax return of 8.47 per cent, paid monthly.

Oyster’s chief executive, Mark Schiele, said the property appealed to investors because of its location, the quality of refurbishment, calibre of tenant and length of lease – all attributes which make for sound long term property investment. “Orion Health is undoubtedly an outstanding business with strong international growth prospects. Orion’s commitment to the site, including its 15 year lease with three five year rights of renewal, as well as further development potential, has proved very attractive to investors.”

Orion undertook a full-scale rebuild and refurbishment of 181 Grafton Road following their purchase in mid-2011. The building is now rated at 100 per cent of new building standard.

The high level of interest in Oyster’s latest property syndication scheme follows the success of similar offers made last year by the company for the MEGA Mitre 10 properties in both Pukekohe and in Lincoln Road, Henderson. Both also closed over-subscribed, earlier than expected.

Oyster continues to see proportionate ownership of commercial property as an attractive investment option as it allows groups of individuals to invest in assets of significant value and scale without the hassle of day to day management. The company has undertaken a number of successful property syndications and currently manages nearly $600 million of retail, office and industrial property throughout New Zealand.

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