Zarraffa’s Coffee brews deal for abandoned Eagleby retail project
Zarraffa’s Coffee will transform an eyesore in the Brisbane-Gold Coast corridor into its corporate headquarters after the group’s development arm purchased the vacant property for $12.5 million.
Tonken Property Group acquired the 5.4ha site, which includes an unfinished 18,000sqm building beside the M1 Pacific Motorway at Logan, with a view to transforming it into a vibrant retail and food precinct.
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The dormant site, at Distillery Drive in Eagleby, Logan, which is also adjacent to the recently renovated Beenleigh Rum Distillery, has stood vacant for four years and has become a target for graffiti vandals.
The expansive site was previously being developed as an outlet shopping centre by Quinnco until works ground to a halt when receivers moved on the project in late 2011 after the company hit financial trouble.
Previous potential purchasers had a variety of plans for the property, including entertainment venues, large format retail, markets, manufacturing and distribution centre and so on
The site has since attracted interest from numerous investors, but despite four contracts having been previously issued to purchase the property, none have proceeded.
The Gold Coast-based coffee company now plans to relocate Zarraffa’s existing headquarters from Helensvale to the Distillery Drive site after undertaking preliminary works over the next 12 months.
Zarraffa’s Coffee will be the anchor tenant, with the relocation plan to include moving its head office, training, packaging and franchising operations.
“The purchase was made with the support of the Logan City Council, with the clear intent to start moving Zarraffa’s operations in a staged manner,” Zarraffa’s Coffee CEO Kenton Campbell says.
“We are also looking at plans to develop the property into a retail and food precinct, over a forecasted seven-year period.”
Zarraffa’s was aware of the property and took the opportunity to make an offer when the time was right for its business
“Our next step will be preliminary works, which will include clean up and set up of basic infrastructure with a master plan to be developed over the next six to 12 months.”
Colliers International national director of retail investment services Stewart Gilchrist negotiated the deal on behalf of the owner, an Adelaide-based financial company.
Gilchrist says he received strong interest in the property over time, given its high profile location on the Pacific Highway and exposure to more than 125,000 vehicles each day.
“Previous potential purchasers had a variety of plans for the property, including entertainment venues, large format retail, markets, manufacturing and distribution centre and so on,” he says.
We are also looking at plans to develop the property into a retail and food precinct, over a forecasted seven-year period
“Four contracts were issued to purchase the property, however for various reasons they did not proceed.”
“Zarraffa’s was aware of the property and took the opportunity to make an offer when the time was right for its business.”
Zarraffa’s Coffee was established in 1996 as a roasting house operating from the backstreets of Southport on the Gold Coast. Today the business has 73 stores across Queensland, northern New South Wales and Western Australia.