Surfwear retailer Billabong’s new owner is selling the company’s Gold Coast Burleigh Heads base with the focus to free up capital to reinvest in its business.
Boardriders announced it will list its Burleigh Heads office property for sale but maintain its occupation of the site under a 12-year lease.
Market sources say the expected price range for the Gold Coast asset sits in the $45 to $50-million price bracket.
The property spans 3.3-hectares of land, with a net lettable area of approximately 15,000 square metres.
The asset was acquired by Boardriders, which is majority owned by US group Oaktree Capital, in March this year as part of the Billabong business acquisition and is its Asia Pacific headquarters.
Boardriders also owns brands such as Quiksilver, Roxy, DC Shoes, RVCA, Element, and VonZipper.
Boardriders global president Greg Healy said the sale is in line with the company’s strategy to focus on its core business and free up cash to invest in its brands.
“Importantly, under the sale and lease back arrangement, we will secure Boardriders long-term occupation of the property including the office, store and warehouse area,” he said.
The surfing brand Billabong was almost wiped out from the market before Boardriders purchased it for $198 million this year.
The offering, located adjacent to Stockland’s Burleigh Heads Shopping Centre, comprises a retail store, showrooms, warehousing, car parking and office space for more than 200 people.
Knight Frank’s Mark Witheriff and James Branch have been appointed to sell the asset with a long term lease over the entire property via an expressions of interest campaign closing on 6 December.
The announcement follows earlier decisions by Boardriders to maintain office presence in both Burleigh Heads, Queensland, and Torquay, Victoria.