Distribution and logistics centres continue to ride a wave of value growth and popularity with investors, with ASX-listed Centuria Industrial REIT acquiring the Quiksilver facility in North Geelong for $22.8 million. 

Fitzroys Director, Paul Burns brokered the off-market sale of 75-105 Corio Quay Road on behalf of a private investor. 

The 21,772 square metre facility is on a 3.763-hectare site and is used by the iconic surfwear brand as its Asia Pacific distribution centre. 

At a glance:

• A Quiksilver distribution centre in North Geelong has been sold to Centuria Industrial REIT for $22.8 million at a yield of about 8.2 per cent. 
• The off-market deal was brokered by Fitzroys Director Paul Burns.
• The 21,772 square metre facility is on a 3.763-hectare site and is used by the surfwear brand as its Asia Pacific distribution centre. 

The site comprises two modern, high-clearance industrial warehouse and office buildings connected by a fully enclosed transit area.

The southern warehouse, built circa-2010, has a clearance of 12.2 metres. 

Late in 2018, the tenant entered a new five-year lease until late 2023, with a five-year option, on a deal that returns $1,876,290 per annum with 3 per cent annual increases.

The decision was made on the back of the property being chosen for the consolidation of the distribution centres of Quicksilver and the newly acquired Billabong business. 

Mr 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 Quicksilver 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. 

Quiksilver is part of the Boardriders Inc. company, owned by New York based Oaktree Capital Management, and which includes major retailers Billabong, Roxy and DC Shoes. 

The brand was founded in in Torquay 50 years ago. 

Mr Burns said industrial real estate was among the most sought after investment classes, with land values expected to rise further in the coming years.

“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,” he said.

Similar to this:

'Booming' Brisbane suburb serves up $8.5 million in industrial deals

Warehouse in Brisbane's north sold for $1.2 million

Ronis Variety Discount Stores secures new Wetherill Park distribution centre