Centuria Industrial REIT acquired Quiksilver’s Asia Pacific distribution facility in Geelong for $22.8 million is an off-market sale brokered by Fitzroys director Paul Burns.

THE Asia-Pacific distribution centre for Australian surfwear brands Quiksilver and Billabong at North Geelong has sold to an ASX-listed investor in an off-market deal.

Centuria Industrial REIT acquired Quiksilver’s Asia Pacific distribution facility for $22.8 million in an off-market sale brokered by Fitzroys director Paul Burns on behalf of a private investor.

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The 21,772sq m facility at 75-105 Corio Quay Rd is on a 3.8ha site comprising two modern, high-clearance industrial warehouses and office buildings connected by a fully enclosed transit area.

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 a year with 3 per cent annual increases.

The brands’ owner Boardriders Inc consolidated the distribution centres for Quiksilver and Billabong (which was on the Gold Coast) in Geelong after it acquired Billabong in 2018.

Boardriders’ former Torquay headquarters sold for $15.2 million in 2018.

Mr Burns said Quiksilver had 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 about 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 includes major retailers Billabong, Roxy and DC Shoes. The brand was founded in Torquay 50 years ago.

But the national headquarters relocated to the Gold Coast after Boardriders acquired Billabong and the Torquay site was sold in 2018 for $15.2 million.

Geelong Port worker Ben Carter is dwarfed by giant wind turbines that arrived into Corio Quay, opposite the Quiksilver warehouse. Picture: Alison Wynd

“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,” Mr 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.”

Mr Burns handled the last sale in late 2016. Then, the facility was part of a package that included an adjoining 1.2ha development parcel of land — not included in the latest deal — which sold together for $19.5 million.

Mr Burns said Centuria Industrial REIT was attracted to the property’s quality and location near major transport infrastructure, including the Port of Geelong and Avalon Airport.

Geelong is also an hour from Melbourne Airport and the Port of Melbourne.

Centuria also owns Geelong’s TAC headquarters through another subsidiary.

The distribution centre is directly opposite Ford Australia’s product development hub, which the car maker retained after selling the rest of its North Geelong and North Shore manufacturing properties to Pelligra, which is transforming the factory into a high end industrial and business park.