Case Study
23 Walters Drive, Osborne Park
AGEM believe that results revolve around relationships, which is why they co-invest in all property investment projects.
Adrian Fiore, Managing Director, and the team at AGEM Property Group control every aspect of an asset’s lifecycle, de-risking each project by collaborating as an investment partner with the same interests.
“We treat our investors like family. When you invest with us, it’s not just about your financial success – it’s about building a partnership where our family invests with yours, ensuring your interests and goals are at the forefront of everything we do” . – Adrian Fiore, Managing Director
23 Walters Drive, Osborne Park
Asset Summary
In alignment with AGEM’s approach to every commercial investment project, they identified a value-add opportunity with a defensively-positioned tenant.
| Type of investment | Passive income fund |
| Purchase price | $8 million |
| Acquisition date | December 2022 |
| Revised value | $10.3m (as at 17 December 2022) |
| Land area | 4,903m2 (with 70 parking bays)) |
| Lettable area | 2,700m2 |
| Lease term | 6 Years |
| Key tenant | Australian Clinical Labs (ACL) |
| Investment term | 5 years |
Using an extensive professional network, negotiations with the seller commenced in mid-2021, with the acquisition successfully secured in December 2022.
Year one forecast return
34.5%
Combined income and capital
AVERAGE FORCAST RETURN
7.0%PA
OVER THE TERM OF THE INVESTMENT
Market Analysis and Due Diligence
As co-investors in each project, AGEM undertake rigorous due diligence. They commenced a comprehensive analysis to assess the property’s potential, including market trends, rental and vacancy rates, and economic indicators.
The due diligence process also involved an in-depth examination of the property’s financial records, leases, maintenance history, and potential legal or environmental issues.
Together with their extensive in-house expertise in this space, AGEM enlisted the professional services of engineers, lawyers, town planners and insurance brokers to complete a rigorous assessment process.
The Acquisition
AGEM developed a strategic plan for acquiring the commercial property, leveraging the team’s relationships and market insights.
“We take a hands-on approach when it comes to negotiations. We believe in being transparent, thorough and avoiding impersonal legalities. We prefer direct engagement, ensuring open communication and building trusting relationships, as we work together towards a successful property acquisition,” Adrian Fiore explains.
Negotiating directly with the sellers at their dining room table, favourable terms for all parties were reached, including a purchase price below the initial asking price. Australian Clinical Labs had less than 12 months remaining on their lease; however, AGEM successfully negotiated a new 6-year lease with ACL, delivering a $2.3m uplift on the $8m purchase price, prior to settlement.
Asset Management
AGEM understands the importance of efficient property management for long-term success. Their experienced asset management team oversees a team of external property managers, maintaining direct tenant relationships and high occupancy rates.
In summary, AGEM’s unique co-investment model, rigorous due diligence process and relationship focus, resulted in the successful acquisition of 23 Walters Road, Osborne Park, and a solid return for investors.
“We spent considerable time getting this acquisition to a point where we were comfortable. But securing an ASX-listed tenant in a defensively well-positioned sector and a prime location like this takes time and resilience. It was a great team effort over eighteen months”.
Ben Graham