AGEM Canning Vale Local Services Fund
Wholesale Investors Only

AGEM Canning Vale Local Services Fund

AGEM Canning Vale Local Services Fund
AGEM Canning Vale Local Services Fund
|
Last Updated 08.01.2025

The Fund has a target Investor Total Return of 12% p.a. and tax-efficient income distributions starting at 7.3% p.a.

AGEM Canning Vale Local Services Fund
Min. Investment
$150,000
Objective
Growth and Income
Structure
Managed Fund
Asset Class
Property (Listed/​Unlisted)
Liquidity
Illiquid
Closing Date
Trustee Discretion
View More Details
Min. Investment
$150,000
Objective
Growth and Income
Structure
Managed Fund
Asset Class
Property (Listed/​Unlisted)
Liquidity
Illiquid
Closing Date
Trustee Discretion
Industry
Healthcare & Medical, Retail, Consumer Products & Food
Funding Stage
Unlisted Early-Stage Fund
Security Type
Unit in a trust
Target Capital
$6,700,000
Availability
Open for investment

Investment Highlights

Forecast Total Return of 12% p.a. | Forecast Cash Distributions of 7.3% p.a.
Health & Essential Services Hub with a diverse tenant mix of established operators
Growing population and demand for tenant services in local area
AGEM management and associates will maintain up to 30% ownership

Syndication Fee
3.0% of GAV
Management Fees
1.0% p.a. of GAV
Performance Fees
20% of Investors’ return above a 12% Total Return
Forecast Cash Distributions
7.3% p.a.
Distributions
Quarterly
Investment Term
5 Years

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

  • Little Kindy Childcare
    Little Kindy Childcare is a privately owned national childhood education and care provider for children aged from 0-5 years old. Little Kindy has a network of 12 centres across New South Wales, South Australia and Western Australia with a further three centres opening in WA and QLD.
  • Ranford Veterinary Hospital
    Ranford Veterinary Hospital is locally owned and managed, with operations commencing in 1996. During pre-acquisition discussions, the owners expressed a strong desire to further extend this tenure and subsequent negotiations successfully delivered a 10 year lease extension.
  • Skye Medical Centre
    Blue Skye Medical Pty Ltd is a private company, incorporated in 2016. Trading as Skye Medical, the group also operates Skye Medical Armadale. This clinic has nine GPs working in various capacities, in addition to onsite pathology services and allied health services including podiatry, physiotherapy, exercise physiology and dietician services.
  • World Gym
    World Gym opened its first facility in 1976 in California. The group since expanded and World Gyms can be found in 16 countries, with a network of more than 40 gyms across Australia. 

 

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.

 

We focus on acquiring and developing high-quality assets with reliable tenants who demonstrate a record of sustained success and/or projected long-term demand. Prior to proceeding with any investment, we ensure long-term income is secured. This mandate sees us partner with a range of leading brands, and businesses delivering essential services such as healthcare and childcare.

 

Our deep knowledge of the WA market paired with extensive experience in finance, property development, management and construction, and strong network spanning the public and private sector has enabled us to navigate challenging markets, leverage exciting opportunities, and consistently deliver on our promises.

 

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).

To request a copy of the Information Memorandum, please fill out the inquiry form on the right to connect with the Fund Manager.

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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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