Managing Director of Ready Media Group, Rob Langton, recently sat down with one of Sydney's most recognisable business moguls, Jon Adgemis. Mr. Adgemis has been a first-hand witness to some of the most significant transactions in Australian business history, and with a more recent pivot towards property acquisition and refurbishment, few have his breadth of experience across all sectors of the finance and commercial property world. Here are some of the highlights from Adgemis' discussion with Mr. Langton.
He left KPMG to go to Greshem Partners before going back to KPMG
Adgemis joined KPMG in 1999, a year out from the conclusion of his Economics degree, in the Mergers & Acquisitions (M&A) division. At that time, the organisation wasn’t a big name in the world of M&A’s.
“KPMG wasn’t known to be a mover and shaker in the M&A world. It was an offering that they had that essentially was to serve existing clients.”
Adgemis and the other members of KMPG’s nascent M&A sector elevated the company’s profile by engaging with some major clients during his initial stint with the company. Most notable was their work to help Reckitt & Colman offload a range of brands they had come to own since acquiring Benckiser.
“It was the first of its kind in terms of starting to look towards a larger deal value, one which we were engaging with private equity as a buyer audience, but being on the other side. It was a bit of stepping stone for KPMG.”
After working at KPMG for a few years, Adgemis elected to move to Gresham, to get more public market experience.
KPMG - One of the biggest names in corporate finance and Adgemis' home for much of his career
Adgemis worked with some of the biggest names in the corporate world upon taking his work to Gresham.
“One of the first transactions I worked on was the backend of the BHP/Billiton [merger], which was an enormous transaction. [I was] just helping out on some of the bits and pieces towards the end of that.”
“And then I went straight into a public markets transaction for Wesfarmers... and then rolled straight into the Delta/Goldfields merger... all transactions were north of a billion dollars, and one of them was the largest transaction in Australian corporate history at that time.”
When he eventually returned to KPMG subsequent to his tenure with Gresham, he brought with him a newfound knowledge of the M&A division that would enhance the organisation’s offering.
“I thought I could bring a skillset to KPMG that they didn’t have through public market transactions, and further to that, [I could] really make my mark in that business.”
His work in real estate, and how he maximises his pubs
Whilst Adgemis’ property venture, The JAGA Group, was only founded in 2015, Adgemis acknowledges that he had a history with and a passion for real estate.
“I was buying some of the real estate assets that I own today back in 2008, 2010. JAGA was formed... in 2015 as a holding company, but some of the real estate I’ve held for some time.”
His mandate has always been to buy unoccupied commercial property and tenant it out himself, and he found success with this particular mandate.
The Strand - Adgemis purchased the Darlinghurst establishment in 2021
Adgemis reconfigured his sights on the pub market in the wake of the lockdowns in 2020, as opportunities to take advantage of the industry’s contraction began emerging. He would acquire sites and immediately reconfigure spatial allocations, to better maximise holding income. He cites his purchases of both Darlinghurst’s The Strand and Annandale’s Empire Hotel as examples of this strategy.
“The way in which we looked at those assets was that they’re well-positioned assets. They’re doing very well on the ground level, but there’s greater opportunity in everything above the ground.”
Whilst the previous operators were doing great business, Adgemis felt that they had missed opportunities by not spending as much time fitting out the accommodation offerings these properties possessed.
“I’ll take The Strand for example: we decided to refit all the rooms upstairs and take them back to what they were many years ago, which was really nice accommodation. And then we decided to invest in a rooftop, and what we’ve achieved is a weekly turnover that is two times what the previous operator did.”
By viewing his hospitality venues as an ecosystem of offerings, as opposed to just a pub, Adgemis can make the most of every revenue stream possible.
Social investing is his future
When asked which industry or sector Adgemis sees himself moving into, it isn’t a property asset class or corporate division that the executive expresses interest in. It’s social investment.
“I think that my focus will be more around social investing, going forward.”
For Adgemis, his priority is to contribute to the disability service space.
“I’ve got a strong desire to spend a lot more time building accommodation in the NDIS space, because I’ve got a nephew with a disability, and I think the accommodation that’s out there could be done better.”
Whilst he doesn’t see himself giving up his business ventures anytime soon, Jon Adgemis sees a greater purpose in improving the lives of those less fortunate than himself. Instead of resting on his laurels, he’s committed to trying to do give back in some measure.
“It’s probably not driven by return as much. It’s more about where I can use some of my skills to create social good.”
Watch the full interview with Jon Adgemis, conducted by Rob Langton, here.
