Oyster Property Ltd announced its intention on Friday to buy 60% of the Tauranga Crossing shopping centre outside Tauranga.
The developer, Tauranga Crossing Ltd (Richard Stilwell & Mark Taylor), will retain 40%.
The 19.47ha site has a net lettable area of 45,637m², 1789 parking spaces, and over 100 tenancies generating $17.73 million/year net income.
Oyster will establish Tauranga Crossing Limited Partnership and said it would offer wholesale investors minimum parcels of $1 million, split into 4 $250,000 interests, and $250,000 increments above that.
Oyster is targeting an annualised return of 12% over the first 3 years and has forecast a running pretax distribution of 6%/year, paid monthly.
Further staged development is planned.
Attribution: Oyster release.