Centuria Industrial REIT has snapped up the Quiksilver distribution and logistics facility in North Geelong for $22.8 million in an off-market sale.
The 21,772sq m facility located on a 3.763-hectare site, at 75-105 Corio Quay Road, and is used by the surf wear brand as its Asia Pacific distribution centre.
Fitzroys director Paul Burns, who brokered the sale, said the consolidated Quiksilver and Billabong centre will see turnover at the facility go from around 4.5 million units to circa 10 million units once in full operation in the coming months.
“Industrial real estate is now among the most sought-after investment classes, and land values are expected to rise further in the coming years,” Burns said.
“Growth in online shopping and demand for more efficient delivery and a bigger range of products across the retail industry has increased requirements for logistics systems and facilities.”
Related: Burleigh Heads Site Hits The Block
The last time the property transacted was in 2016 when Impact Investment Group offloaded the asset. The facility was then part of a package that included an adjoining 1.244-hectare development parcel of land — not included in the latest deal — which sold together for $19.5 million, also negotiated by Burns.
Impact Investment Group purchased it for $14.3 million in July 2013.
ASX-listed Centuria acquired the property on a 8.2 per cent passing yield, with the tenant entering a new five year lease last year. on a deal that returns $1,876,290 per annum with 3 per cent annual increases.
The North Geelong property was chosen for the consolidation of the distribution centres of Quiksilver and the newly-acquired Gold Coast-based rival Billabong.
Quiksilver is part of the Boardriders Inc. company, owned by New York-based Oaktree Capital Management, which includes major retailers Billabong, Roxy and DC Shoes.
Quiksilver was founded in Torquay 50 years ago in 1969, one block away from the beach, and was renamed Boardriders in 2017.