Singapore group buys surfwear giant’s Gold Coast HQ
Singapore-listed AIMS AMP Capital Industrial REIT has swooped on the local headquarters of surfwear maker Boardriders, Inc. in the Gold Coast suburb of Burleigh Heads, sweeping up the property for $38.46 million.
The play is its first local expansion since fund manager AMP Capital exited its stake in the trust and its management, selling both to Sydney-based AIMS Financial Service Group.
The property was offloaded by a unit of Boardriders, GSM Rocket Australia Pty Ltd, on a yield of 7.8% and it will remain as a long term tenant.
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Boardriders took over Billabong in March last year after shareholders accepted a $1.05 a share takeover offer and it put the property, that it picked up in the takeover, on the block last November.
Knight Frank’s Mark Witheriff, James Branch and Sebastian Fahey brokered the property deal.
The surfwear company, which has brands including Quiksilver, Billabong, Roxy, DC Shoes, RVCA and Element, will lease back the building for 12 years. It carries an annual rental escalation of 3%, with a rent review at midterm of the lease.
The trust manager’s chief executive Koh Wee Lih said the proposed acquisition represented an opportunity to further diversify and strengthen its portfolio, with a strategic addition that offers a strong tenant profile and provides income stability to the trust.
“This acquisition also marks the first investment under AIMS Financial Group as the sole owner of the management entities of AA REIT since March 2019,” Koh says.
He says the outlook for the Gold Coast economy remains positive as the region is currently experiencing growth across key economic areas, including strong population growth, investment into major infrastructure developments and a boost for both domestic and offshore tourism.
“This investment will enable us to expand AA REIT’s footprint in a market that offers solid long-term growth,” he says. The deal will take AA REIT will take the trust to 27 industrial properties, 25 of which are in Singapore, and it also has a 49% stake in the local Optus headquarters in Sydney’s Macquarie Park.
This article originally appeared on www.theaustralian.com.au/property.