This content is part of a paid partnership with AGEM Property Group
AGEM Property Group’s Managing Director, Adrian Fiore, unveils their latest healthcare investment, a pharmaceutical manufacturing facility, secured by a national tenant on a rare 20-year triple net lease.
Earlier this year, we shared our perspective on how market conditions are reshaping Australia’s investment landscape and, in turn, why commercial property, particularly in essential-service sectors, has become an increasingly compelling option for those seeking passive income and capital growth.
Since then, the market has continued to evolve as anticipated. As rates edge downward and traditional income sources such as term deposits and residential property offer limited upside, demand for stable, income-generating assets has intensified.
For many in the medical profession, our passive income funds provide access to commercial property investments that deliver reliable quarterly income without the volatility of equities or the active management burden of residential property.
They offer a way to let capital work quietly in the background while you scale back clinical hours.
I’m pleased to share our upcoming single asset passive income fund, the first in our Core Services Opportunity Fund series, underpinned by a well-established pharmaceutical manufacturing facility.
It is rare that a property of this quality is available for investment – combining three essential qualities of a blue-chip property investment – location, long-term lease and a strong tenant covenant.
Situated a short distance from Perth CBD, the property represents a rare intersection of industrial strength and healthcare resilience.
The tenant is a leading Australian-owned pharmaceutical manufacturer producing a range of medicinal and healthcare products, spanning hospital use, prescription, over the counter, and specialist products, in addition to contracted manufacturing services.
The property holds rare and highly complex pharmaceutical manufacturing approvals, including a Therapeutic Goods Administration (TGA) and Good Manufacturing Practice (GMP) certification, enabled by a multi-million-dollar capital investment by the tenant.
It is one of very few assets of its kind in WA and plays a critical role in the supply and production of pharmaceuticals.
The property is underpinned by a 20-year triple net lease, meaning the tenant is responsible for all outgoings, insurance, maintenance and, unlike most commercial leases, most capital costs.
For investors, that structure can translate to a strong and truly passive income stream.
The Fund targets a total forecast return of 12-14% per annum, including average quarterly income distributions of 7.5% per annum.
Located in one of Perth’s most tightly held industrial precincts, the site’s underlying land value further supports our long-term capital projections.
About AGEM
AGEM is an investment manager specialising in providing wholesale 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 Perth team is committed to the success of every asset.
Since 2012, we’ve launched over 30 unlisted commercial property funds/syndicates, with our current passive income fund portfolio delivering an average total investor return (IRR) of 15.1% pa.
The syndicate model can give you access to high-quality assets that may otherwise be financially out of reach – by pooling resources and investing collectively, you can tap into a diverse range of commercial properties, including large format retail, shopping centres, medical centres, industrial complexes, and accommodation.
Our focus on achieving long-term growth, whilst also delivering passive income for investors is grounded in family values. Our priority is to be able to make time for the things that matter and it’s a value that’s shared by our investors.
An invitation to invest alongside us
As with all AGEM Funds, AGEM management will retain a cornerstone position in this Fund, investing alongside participants to ensure full alignment of interests and a shared commitment to long-term success.
The Fund is currently open to wholesale investors. For more information, visit AGEM’s website here.
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