BILLABONG BURLEIGH HEADQUARTERS FOR SALE
Surf brand’s US-based owners selling Gold Coast base but won’t be going anywhere with lease-back agreement all part of the plan
THE new owner of Gold Coast surfwear icon Billabong is selling its Burleigh Heads base as it seeks to free up cash to invest in the business.
California-based Boardriders, which is majority-owned by US group Oaktree Capital, took over Billabong in March this year after shareholders voted to accept a $1.05 a share takeover offer.
This week it announced it had engaged Knight Frank’s Mark Witheriff and James Branch to sell the Billabong headquarters at 1 Billabong Place.
Industry sources said Boardriders was looking for between $45 million and $50 million for the Burleigh property.
The massive 3.3ha site is off Burleigh-Connection Rd and
encompasses buildings with a net lettable area of 15,000sq m including retail, showroom, warehouse, and office space for 200 employees.
Earlier this year Boardriders announced it would close Billabong’s
Helensvale distribution centre by mid-2019 with the loss of 55 jobs.
It said it would move its national headquarters to Burleigh Heads at the same time, resulting in the creation of an unspecified number of jobs. Boardriders Asia Pacific president Greg Healy said the sale of 1 Billabong Place was in line with its strategy to focus on its core business.
“Importantly, under the sale and lease-back arrangement, we will secure Boardriders’ long-term occupation of the property (including the office, store and warehouse area),” he said in a statement.
As part of the sale Boardriders will commit to leasing back the property for 12 years at an unspecified rate.
Boardriders inherited the property, which is next to Stockland’s Burleigh Heads shopping centre, when it took over Billabong.
The company now owns the Quiksilver, Billabong, Roxy, DC Shoes, RVCA, Element, VonZipper, Xcel, Kustom and Palmers brands.
An expressions of interest campaign for 1 Billabong Place closes on December 6.