Case Study

40 Collick Street, Hilton

AGEM Property Group’s fundamental tenet of relationship-based co-investing saw the successful off-market acquisition of a former Anglican church and rectory at 40 Collick St Hilton, Perth.

40 Collick Street, Hilton

Asset Summary

Type of investment Development - Fixed Interest Fund
Tenant Little Kindy Childcare
Acquisition date May 2022
Land area 1,500m2 corner site in an established infill area
Outdoor area Over 450m2 outdoor playspace
Facility Licensed for 63 daycare places (with 13 parking bays)
Location Within the City of Fremantle (approx 2.5km east of the Fremantle CBD and 14km from the Perth CBD)
WALE 15 years

Market Analysis & due Diligence

AGEM undertook rigorous due diligence before acquiring the property, commencing a comprehensive analysis to assess the property’s potential, including;

  • Community/social aspect – identifying a much-needed service while retaining some of the character and history of the area.
  • Demand for childcare services – according to recent ABS data, it was determined that for 1,134 children aged 0-5 in the catchment area, there were only 421 daycare places available.
  • Project feasibility.
  • Economic factors including interest rate rises, availability of trades and construction costs.
  • Federal Government Subsidies – $4.7b investment over 4 years to make early childhood education and care more affordable.

The due diligence process also involved an in-depth examination of the property’s maintenance history and potential environmental issues. Together with their extensive in-house expertise, AGEM enlisted a range of professional services to complete the exhaustive assessment process.

In line with their strategic approach to structuring projects, AGEM identified the 1,500sqm site (along with two other sites) for Little Kindy Childcare, an eastern states-based tenant looking to expand their business into WA.

Secured initially with the view to subdivide and sell the rectory, demolish the church and erect a new, purpose-built childcare facility, the project’s trajectory pivoted when it became evident that the existing church building and services could be adaptively reused and converted instead.

With the church’s services and infrastructure on one side of the building and the rest a large open hall, the project became more a refit and renovation than a complete redesign, retaining the majority of the existing building fabric and upgrading it to a childcare centre. Much of the former church car park became an outdoor play space, comprising play equipment, artificial lawn, fixed shade structures, sandpits and soft landscaping, as well as the retention of large trees on the site.

Despite difficulties securing trades during Perth’s most challenging construction market in decades, this change in direction ultimately saved significant time and costs, resulting in the project being successfully delivered under budget and ahead of schedule. Securing planning approval and a builder prior to settlement, together with a contract to sell the surplus rectory land, were critical in achieving this optimal outcome.

“Initially, our designs required demolishing the church. However, by rotating the new building proposal 90 degrees, we saw it matched the church’s approximate size. With clever design from our architects, Hodge Collard Preston, and our consultant team, we preserved the entire church, saving time, cost, and reducing waste.”

Chris Harman

General Manager

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