AGEM Property Group has quietly settled on 29 Flynn Street, Wembley, following an off-market purchase facilitated by Cygnet West.
The 6,099m² lot is one of the largest commercial landholdings in the area, accommodating approximately 4,750m² of lettable area across two buildings.
Whilst the buildings are currently 40% vacant, Adrian Fiore, Founder and Managing Director of AGEM, said that underperformance was central to the appeal.
"We monitor a range of assets across suburban markets and have been keeping an eye on this one over the past 12 months. Wembley is an affluent, tightly held catchment just 5km from the CBD. We took the time to understand the seller's circumstances and were able to offer a clean, straightforward disposal option."
The response from AGEM's co-investor network was swift, with strong interest in the opportunity within days of it being made available.
"Our co-investors got behind this one quickly, and that reflects the trust we've built with them over time," Mr Fiore said. "We back our own judgement and move decisively when something's right. Flynn Street is a good example of that."
The fund is targeting a 15% p.a. average total return over five years, with average cash distributions of 8% p.a.
Tory Packer, Partner in the Capital Markets team at Cygnet West, said it was a good outcome for both seller and buyer.
“The sale of 29 Flynn Street reflects the strong demand for quality suburban office assets in Perth. Astute buyers are increasingly attracted to opportunities that offer scale, strong underlying land value and the ability to create value through leasing, refurbishment or future redevelopment. With Western Australia’s economy and population continuing to grow, we expect demand for suburban office buildings to remain strong over the coming years, as businesses prioritise affordability, accessibility and workplace flexibility.”
Cygnet West has been retained to lead both leasing and property management of the site post-settlement.
AGEM management and related parties hold a direct stake in the fund alongside its co-investors, consistent with the group's model of holding an average ownership position of around 40% across its funds.
Since its founding in 2012, AGEM has established more than 30 unlisted property funds across Perth. The Flynn Street settlement follows AGEM's recent acquisition of a $21.5 million pharmaceutical manufacturing facility. Further opportunities are in the pipeline, including an upcoming fund for a multi-tenant convenience retail development in Balcatta, opening to investors soon.
To explore co-investment opportunities with AGEM, reach out to Steve Elliott, Head of Investor Relations, at steve.e@agem.com.au or visit agem.com.au.
Media contact: Steve Elliott Head of Investor Relations AGEM Property Group steve.e@agem.com.au
This release relates to a wholesale fund and is not an offer to retail investors.
AGEM Property Group
