Quiksilver Distribution Centre Rides Wave of Logistics Sector Growth
ASX-listed Centuria Industrial REIT has acquired the Quiksilver facility in North Geelong in a $22.8 million deal negotiated by Fitzroys Director, Paul Burns on behalf of a private investor.
The 3.763ha site at 75-105 Corio Quay Road comprises two modern, high-clearance industrial warehouse and office buildings connected by a fully enclosed transit area with a combined area of 21,772sqm. The southern warehouse, built circa-2010, has a clearance of 12.2m.
Late in 2018, the tenant entered a new 5 5-year lease, on a deal that returns over $1.876 million per annum with 3% annual increases. Already used as Quiksilver’s Asia Pacific distribution centre, the lease was taken after the property was chosen for the consolidation of the distribution centres of Quiksilver and the Billabong business, recently acquired by Quiksilver’s parent company Boardriders Inc., which is owned by New York-based Oaktree Capital Management and includes other retailers Roxy and DC Shoes.
Burns said Quiksilver had made a significant commitment to the property and the Surf Coast area, where they have been for many years. They recently made further upgrades to accommodate business expansion that include additional warehouse racking, office refurbishment and refitting, and increased staff amenities.
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. The onsite workforce is expected to increase by around 30 full-time positions and approximately 50 part-time.
“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,” Burns said.
“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 there is heightened investor demand for strategically located logistics assets with quality fit-outs and strong lease covenants.
Burns negotiated the last sale of the property in late 2016. Then, the facility was part of a package that included an adjoining 1.244ha development parcel of land - not included in the latest deal - which sold together for $19.5 million.
Wesley Place Tower Fully Pre-committed
AustralianSuper has leased 16,200sqm within Charter Hall’s 130 Lonsdale Street tower development in the $1.2 billion Wesley Place precinct, joining other pension funds Cbus and Telstra Super as well as Vanguard and the Australian Financial Complaints Authority as tenants.
Now fully occupied, the 35-storey building will be one of three towers in the precinct in the CBD’s east end. A new tower will be constructed at 140 Lonsdale Street, and the existing Telstra-anchored 150 Lonsdale Street building will be refurbished.
BIS Oxford Economics Prime has forecast rents to rise a further 30% to 40% in the city over the next five years, with strong tenancy demand to keep vacancy rates low even throughout a period that will see around 250,000sqm of new office stock brought to the market.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2019 Fitzroys.