Agem snaps up $19m Hillarys Plaza

Perth property fund manager Agem Property Group has bought a Hillarys business centre for $19 million, adding to its portfolio of unlisted assets.

Agem bought the mixed-use commercial building on the corner of Marmion Avenue and Banks Avenue from Sydney’s Perpetual Corporate Trust.

The property fund manager funded the acquisition through a combination of bank debt and equity, with a heavily subscribed $10.2 million equity raising.

Hillarys Plaza is more than 90 per cent occupied, with a 9.7 year weighted average lease expiry.

Agem managing director Adrian Fiore said he believed the business would continue to benefit from strong demand in the local catchment.

“By focusing on getting the mix of tenants right, we ensure the sustainability and stability of income,” he said.

Vetwest, Nido Early Learning School, Western Health Kids, Proactive Physiotherapy, Plus Fitness and State Government Offices among are among the plaza’s tenants.

The trust has an initial five-year investment term and will provide 8 per cent per annum initially with a forecast 10 per cent return rate.