The Fund targets stable passive income, in addition to capital growth for investors.
The asset underpinning this Fund is a health and essential services hub including a medical centre, veterinary hospital, early childhood learning centre and gym and wellness facility in a strategic location - surrounded by dense residential areas and set for continued growth with the completion of the Metronet Ranford Road Train Station next year.
An underlying land component of over 7,000sqm benefits from direct frontage to natural parklands and rare triple street access.
The Fund offers a medium-term investment horizon with planned liquidity events and limited withdrawal facilities. In line with AGEM's genuine co-investment commitment, AGEM management and associates will maintain up to 30% ownership.
The asset is located in the suburb of Canning Vale, Perth, Western Australia. The site sits in dense residential area experiencing significant growth. Whilst the location already benefits from substantial vehicle movement along Ranford Road (20,000+ vehicles per day) and ease of access to Roe Highway (1.5km), the value of the new Metronet Ranford Road Train station 1.5km to the west cannot be understated.
Currently under construction and set to open in 2025, the new station is part of a $1.25bn contract that adds 32 kms of rail to Perth’s Transport Network and helps create the first east-west connection between Perth rail lines.
The tenancy mix curated for the Fund aims to provide diversification across operator, industry and premises size. Significant security has also been successfully negotiated into each lease.
Tenant Overview
Tenancy Security
Tenancy | Bank Guarantee held by Landlord (BG) | Director/Corporate Governance (DG/CG) | Notes |
Little Kindy Childcare | $155,040 | 2 Directors | At the 2nd anniversary of the lease, subject to performance, the DG will be removed |
Ranford Veterinary Hospital | $29,424 | 2 Directors | NA |
Skye Medical Centre | $68,353 | 2 Directors | NA |
World Gym | $228,552 | Corporate Guarantee - Fitness Investments Pty Ltd | At the 2 nd anniversary of the lease, subject to performance, the BG will be lowered and the DG will be removed. |
Tenancy Schedule
Tenancy | Lease Type | Net Rent (pa) | Lease Term (years) | NLA (sqm) | Total Net Income | Total Building Area | WALE |
Little Kindy Childcare | Net | $240,000 | 15 | 1,296* | $1,006,423 | 3,732 sqm | 11 years |
Ranford Veterinary Hospital | Net | $82,500 | 10 | 200 | |||
Skye Medical Centre | Net | $175,000 | 10 | 500 | |||
World Gym | Net | $469,923 | 10 | 2,359 |
* Includes the tenants outdoor playscape.
Asset Acquisition
Contract Price | $16,000,000 |
Acquisition & Trust Fees | $48,000 |
Bank Debt Fees | $5,301 |
Outgoings | $76,751 |
Working Capital | $128,706 |
Total Acquisition | $16,258,758 |
Debt | $9,600,000 |
Equity | $6,659,000 |
Total | $16,259,000 |
Divestment Assumptions
Assumed Sale Date | August 2029 | ||
Cap Rate at Exit | 6.00% p.a. | 6.25% p.a. | 6.50% p.a. |
Sale Value | $19,100,000 | $18,340,000 | $17,630,000 |
Cashflow Projections and Investor Distributions
FY25 | FY26 | FY27 | FY28 | FY29 | |
Gross Rent | 1,240,000 | 1,279,000 | 1,313,000 | 1,348,000 | 1,385,000 |
Outgoing Expenses | (250,000) | (253,000) | (256,000) | (260,000) | (263,000) |
Net Operating Income | 991,000 | 1,026,000 | 1,057,000 | 1,089,000 | 1,122,000 |
Trust Expenses | (83,000) | (34,000) | (65,000) | (124,000) | (155,000) |
Financing Expenses | (538,000) | (521,000) | (475,000) | (434,000) | (415,000) |
Net Operating Earnings | 370,000 | 471,000 | 517,000 | 531,000 | 552,000 |
Liquidity Event
The Trustee will offer liquidity events on a rolling five year basis where all investors have the opportunity to sell or transfer Units should they elect to do so. The transfer or sale of Units will be subject to costs, which may include stamp duty and other Trust related fees.
Limited Withdrawal Facility
Investors should treat this Fund with a medium term horizon of no less than five years. While the investment is illiquid and there is no secondary market for Investor's Units, the Trustee intends to offer Investors the opportunity to withdraw their investment on a limited basis. The amount available to meet a withdrawal request will be determined by the Trustee and subject to available funds.
AGEM is an investment manager specialising in providing investors with access to stable, risk-adjusted commercial property investments delivering above market returns in the form of both ongoing passive income and long-term growth. As co-investors in every Fund, our experienced and dedicated team is committed to the success of every asset.
Adrian founded AGEM Property Group in 2012 and has since led AGEM’s team of property specialists, spearheading the company’s long-term strategy and growing portfolio.
Adrian is a respected figure in the real estate industry, known for his extensive industry network and expertise in deal origination and negotiation. He holds a Bachelor of Commerce (Accounting & Information Systems) from Edith Cowan University in addition to being a registered builder, qualified real estate agent and the licensee/authorised representative of the AFSL held by APG Finance Services Pty Ltd. Adrian brings a wealth of knowledge and experience to AGEM Property Group spanning all elements of property investment including acquisitions, leasing, development, divestment, structuring and project funding.
The importance Adrian places on quality relationships lies at the heart of AGEM’s success. He nurtures enduring partnerships and always strives to align objectives and generate mutual value and trust.
Specialising in Property law, Mark is an authoritative voice on the board at AGEM.
With significant experience in commercial leasing and retail leasing, he has acted for some of Australia’s largest real estate developers and landowners.
With his depth of expertise, active management style and considered approach, all legal matters for AGEM are expertly handled. Mark’s advice on property structures and his prudent risk analysis offer AGEM clients complete peace of mind.
Ben leads the management of AGEM’s property portfolio, ensuring our assets perform well and our tenants are supported to succeed.
Ben brings over 15 years of experience in asset management, development, leasing and disposal across both public and private sectors. He’s equally analytical and practical and highly valued by our diverse network of partners for his collaborative and transparent approach.
Ben has a Bachelor of Commerce from Curtin University, a Diploma of Financial Planning from Kaplan Professional and attained his GAICD certification upon successful completion of the Company Directors Course with the Australian Institute of Company Directors (AICD).
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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