20 Sep Boardriders site has sold
THE Torquay headquarters of global surf giant Boardriders has been sold in a confidential deal struck this week.
A consortium of Geelong private investors cashed out of the 1.95ha Baines Cres property after the US-owned surf giant announced plans to relocate its head office to the Gold Coast.
Boardriders’ $1.6 million annual lease on the purpose-built facility runs until 2021, giving its new owners plenty of time, and income, to find a new use for the property.
Darcy Jarman, Geelong West, agent Tim Darcy handled the confidential transaction.
Mr Darcy said he was unable to divulge the price or identity of the buyer, other than to say it was a Melbourne-based group with previous success in buying and selling sizeable commercialgrade assets in the region.
However, he said during the campaign it would cost at least $20 million to buy 2ha of commercial land and develop a similar facility in Torquay today.
The property was expected to sell for significantly less than its replacement value.
Mr Darcy said the commercial complex’s size and position in central Torquay balanced the anticipated hit on value to potential investors of the major tenant vacating the building.
“It’s another positive endorsement of what’s happening in the Geelong region and the Surf Coast,” Mr Darcy said. “As an investment-grade product, it lives and dies on its intrinsic attributes and the fundamentals of the real estate in central Torquay, which would never be able to be replicated.
“A number saw it as an opportunistic offering, underpinned with strong income for at least three years.
“The improvements, which are specialised to house specific requirement for a headquarters are too good to dismiss.
“The long-term future is of a commercial nature, there might be some variance to that.”