Good time to buy the warehouse
A BAYSIDE precision machinery company, which has had a surge in new business, has bought the office/ warehouse it leased for a year.
Shine Precision Industries paid $1.7m for the facility at 47 Enterprise St, Cleveland, after exercising an option to buy, in a deal struck by Raine & Horne Commercial’s Colin Tucker.
Shine director Ian Boileau said they were “flat out” at the moment.
“It’s going crazy. We did very well to move here last year and without a doubt this has made a huge difference to our business,” Mr Boileau said.
“Since we have been here we have got another 10 machines and by moving here it allowed us to get more work and allowed us to buy it a lot easier.”
Shine Precision is a specialist in high precision CNC (Computerised Numerical Control) machining for automotive, medical, pharmaceutical, mining, marine, aerospace and telecommunication industries.
Their HQ is on a 2955sq m site with a 1232sq m building that was the former Cleveland District Parcel Post Distribution Centre. It was refurbished in 2016 and was occupied by SS Signs which moved to larger premises.
Mr Boileau said Shine Precision was once in a smaller unit nearby and their new home was almost three times larger than their old property.
“Colin and I had been looking for the best part of 18 months,” he said.
“I thought this was fantastic and it was a bit out of our price range to be honest and we were hesitant to jump in. But we managed to get it on a rent now and buy later arrangement.”
Mr Tucker added: “It was one of those deals where he at the time was not in a position to purchase but he needed to expand his business and it worked out well.”
Mr Tucker said the Bayside continued to be a very tightly held market.
“Don’t ask me why, but we have the least amount of stock available I have ever had in the last 15 years,” he said.