Aussie cycling giant 99 Bikes sparks multi-million dollar windfall
Matt Turner founded 99 Bikes with the backing of his wildly successful entrepreneur dad Graham Skroo Turner of FlightCentre.
Aussie cycling giant 99 Bikes, started by the heir to FlightCentre founder Graham Skroo Turner, is drawing millions in a massive sell-off.
The 99 Bikes stores – founded by Matt Turner in 2007 and a wholly owned subsidiary of Pedal Group, backed by ASX-listed Flight Centre – smashed expectations when put up for auction, including one going a crazy $1.11 million over its reserve price.
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The 99 Bikes stores attract cyclists and commuters – young and old.
The 99 Bikes store at 254 Waterworks Rd, Ashgrove in Brisbane sold for $1.11m more than its reserve price at a Stonebridge Property Group auction.
Eight 99 Bikes stores were put up for sale, with agents Stonebridge drawing 336 total enquiries and 40 registered bidders at auction. They landed a total of $17,246,000 under the hammer – a blended yield of 5.26 per cent, a Stonebridge statement said.
The result was a solid $1.6 million more than the reserve price of the stores, though around two-thirds of that came off the standout sale of 99 Bikes Ashgrove in Brisbane. It secured a price $1.11 million over reserve after a whopping 68 bids.
Each of the 99 Bikes stores were offered up for sale individually with new lease terms between 3 to 10 years – with prices going as high as $5.61 million, with yields from 4.46 per cent.
Graham “Skroo” Turner, wife Jude and their children.
99 Bikes Gold Coast was among the locations sold.
“The sale of all eight assets and 100 per cent clearance rate at auction highlights the depth of demand for quality retail investments,” Stonebridge executive Rory Alexander said..
“Investors are clearly prioritising strong tenant covenants and strategically located retail positions – particularly given most assets held shorter lease terms.”
Stonebridge executive Ian Lam said “the campaign drew strong interest from local, interstate, and offshore investors” with just over half of sales coming via Asian buyers.
“Notably, over 55 per cent of the total portfolio transaction value was sold to Asian investors, reflecting the continued reach and influence of the Stonebridge Asia Practice team.”
The firm said the result showed there was strong depth of demand for essential retail investments with quality tenant covenants.
