In June 2005, Oyster Property Group welcomed 60 Khyber Pass Road in Grafton, Auckland, into its expanding commercial property portfolio. 

It was ultimately sold recently, some 18 years later, and provides a good example of executing in a long-term commercial property investment strategy. During this time Oyster navigated challenges including the Global Financial Crisis, changing market dynamics and the COVID-19 pandemic to deliver strong returns to its investors. 

Oyster Chief Executive Mark Schiele said:

Investment highlights

A solid past and a strong future

60 Khyber Pass Road was purchased in June 2005 for $10.2 million, offering investors $100,000 parcels.

At that time, the six-level office building was fully leased to four high quality tenants on long leases, attracted by its proximity to Auckland CBD, key transport links and panoramic views of the Waitematā Harbour and city centre from upper levels.

Oyster Chief Executive Mark Schiele said from the outset, 60 Khyber Pass Road’s potential was clear.

Smooth sailing on stormy waters

A targeted leasing strategy that addressed occupancy challenges and changing market conditions was a main contributor to Oyster’s success.

To stay ahead of evolving office market trends, the property needed to continually adapt its offering to ensure high occupancy and consistent rental income.

This involved undergoing the first of three refurbishments when the anchor tenant’s lease came to an end in April 2010.

The design and refurbishment breathed new life into a prime office space and, coupled with a strong leasing campaign, Oyster secured a replacement tenant to move into the improved workspace. 

The property was revamped again in 2019 and most recently in 2021 – this latest makeover totalling $3.6 million was instrumental in securing the current anchor tenant.

Oyster General Manager – Property Fabio Pagano said:

Bringing it home for investors 

The property navigated a number of economic cycles as well as the pandemic, and went through several changes in tenancy including a key tenant vacating in December 2020.

Oyster continued to assess the asset’s potential and, to ensure optimal value was realised for investors, accordingly made the decision to sell the property.

In February 2023, Oyster sold 60 Khyber Pass Road for more than double the purchase price – $21 million – delivering an annual total return of 12.1 per cent and a total return of 213.8 per cent to investors in the process. 

Schiele said: “The decision to sell the asset was the best way to optimise returns to our investors. 

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