The Oyster Credit Fund
Built for wholesale investors wanting portfolio resilience and diversification, the Oyster Credit Fund is a portfolio of short-term, first-mortgage loans secured by residential property - generating interest through borrower-paid interest.
This open-ended fund has a unique, income-focused investment strategy, governed by disciplined lending principles and actively managed by a specialist team.
Investment Highlights
~7% p.a.
pre-tax return
Enhanced
Liquidity
Capital
Preservation
Tax Efficient
PIE Structure
Attractive Floating-Rate Income
Credit Funds can add a strategic hedge to portfolios with property, bonds, or equities - helping offset interest rate movements so investors can benefit in both rising and falling interest rate environments.
Across property and economic cycles, interest rate volatility naturally places pressure on equity-based investment products. This is where the Oyster Credit Fund comes in – providing diversification through exposure to floating rate returns at a consistent premium to market rates.
Returns are set at a 4.5% margin above the 30-day BKBM, New Zealand's primary floating rate benchmark, meaning income adjusts with interest rates, while maintaining a consistent premium. This helps reduce the impact of rate movements that typically affect other asset classes.
Investor income is paid under formal loan agreements (independent of business performance) with margins consistent across rate environments.
Enhanced Liquidity
Unlike direct property investment, capital isn’t tied to asset sales. After the initial lock-in period, investors can apply to withdraw with 6 months’ notice.
It is a structured, predictable process - and provides a useful layer of flexibility alongside longer-term property asset holdings.
Full terms are available in the Information Memorandum
Capital Preservation
Diversification
Investors gain exposure to a diversified portfolio of first-mortgage loans across multiple borrowers, assets and deals, reducing reliance on the performance of any single loan.
First-mortgage security
The Fund provides exposure to a diversified portfolio of loans, secured by first-ranking mortgages, given the underlying lending takes a priority security position. All loans are secured over residential and commercial real estate in New Zealand’s metropolitan centres.
Selective lending
The Fund only lends against assets with viable exit strategies, valued on an as-is basis – not against future development potential or projected values. No construction loans. No unfinished developments. No speculative positions.
Conservative gearing
The portfolio maintains a loan-to-value ratio of 65% or below. Borrowers hold meaningful equity in every deal - equity that sits ahead of the Fund in any downside scenario.
Invested alongside you
A capital reserve is built and maintained by the Fund's managers from free cash flow - never from investor funds. It is in place to absorb any credit loss before investors are impacted.
OUR LENDING PLATFORM:
Backed by property and credit specialists
Rockpool Capital, the Fund’s lending platform, is a joint venture between Oyster Property Group and Fortis Capital - providing access to private real estate credit opportunities.
Our wholesale investments give qualified investors access to premium commercial property portfolios offering income and growth potential, with a risk profile that is aligned to experienced investors.
Enhanced Liquidity
How The Fund Operates
The Fund provides a credit position in property through exposure to a diversified portfolio of first-mortgage loans.
Tax-Efficient PIE Structure
On maturity, as borrowers repay principal, Rockpool readvances that capital into new loans - supporting continued income and portfolio liquidity.
Interest paid by borrowers flows back through the Fund as monthly distributions to investors.
Rockpool deploys capital as first-mortgage loans, securing the Fund's priority position over each property. Each loan is structured with a defined exit strategy and a maximum 18-month term
7.75% Targeted Income Return.12% Targeted Annualised Total Return.
A trusted New Zealand bank, acting as senior lender, performs independent loan-by-loan due diligence before each loan is approved. Through the bank, investor capital can be strategically matched on a 1:1 basis – providing governance and potentially enhancing investor returns.
The Pioneer of Outlet Retail in New Zealand
Rockpool identifies and underwrites lending opportunities against robust credit criteria - targeting experienced property owners, investors and developers with strong assets and meaningful equity.
Investor capital is pooled within the Fund and made available to Rockpool, the Fund's lending platform.
Oyster Credit Fund FAQs
The Oyster Credit Fund is a wholesale investment fund that provides investors with indirect exposure to income generated from property-backed lending.
Rather than investing directly in property, the Fund participates in returns generated by a diversified portfolio of short-term loans secured by first-ranking mortgages over residential and commercial property in New Zealand's metropolitan centres.The Fund is available to wholesale investors only, as defined under the Financial Markets Conduct Act 2013. It is designed for investors seeking regular monthly income, exposure to asset-backed lending rather than direct property ownership, and diversification within an existing investment portfolio.
Returns are generated from interest paid by borrowers on loans originated and managed by Rockpool Capital, the Fund's lending platform.
Interest is calculated by adding a fixed 4.5% margin to the 30-day Bank Bill Benchmark Rate (BKBM) - New Zealand's primary wholesale floating rate benchmark - under a formal loan agreement.
Income received flows through the Fund and is intended to be distributed to investors monthly, subject to the Fund's terms and available cashflow.No. The Fund does not own property or invest directly in property assets. It provides indirect exposure to property-backed lending, where the underlying loans are secured by registered first-ranking mortgages over completed residential and commercial assets in New Zealand.
The Fund does not hold property mortgages directly. The underlying loans originated by Rockpool Capital are secured by registered first-ranking mortgages over the relevant properties. The Fund has indirect exposure to those loans through its investment structure.
Risk management is supported through a combination of diversification across multiple borrowers, assets and loan transactions; conservative loan-to-value ratios capped at a portfolio weighted average of 65%; short-duration loan terms of up to 18 months; lending only against completed assets valued on an as-is basis; and active underwriting, monitoring and governance through Rockpool Capital's credit processes.
Full details of the risks associated with investing in the Fund are set out in the Information Memorandum.Rockpool Capital is the Fund's dedicated lending platform, responsible for sourcing lending opportunities, underwriting and approving loans, managing borrower relationships, and overseeing loan performance and repayments.
Rockpool Capital is a 50/50 joint venture between Oyster Property Group and Fortis Capital, combining Oyster's property investment and funds management expertise with Fortis' specialist private credit experience.The Fund offers a structured withdrawal facility that may provide greater flexibility than direct property ownership. Following the Fund's initial 12-month lock-in period, investors may apply to withdraw their capital with six months' written notice.
Withdrawals are subject to the Fund's terms, available liquidity, and the Manager's discretion. Withdrawals may be deferred or suspended in certain circumstances, as described in the Information Memorandum.The Fund operates as a Portfolio Investment Entity (PIE). Income is taxed at each investor's Prescribed Investor Rate (PIR), which may result in tax efficiencies depending on individual circumstances. Investors should seek independent tax advice.
This webpage provides a high-level overview only. Prospective investors should carefully review the Information Memorandum and seek independent financial, legal and tax advice before deciding whether to invest.
†The Oyster Credit Fund is available only to Wholesale Investors (as defined in Schedule 1 of the Financial Markets Conduct Act 2013).
†Any offer to invest in the Oyster Credit Fund is made solely under, and subject to, the Information Memorandum, including the risks, terms and conditions described in that document. Prospective investors should read the Information Memorandum in full before making any investment decision.
*References to investment returns or capital outcomes are indicative only and not guaranteed. See the Investment Memorandum for further detail.