This article is from the Australian Property Journal archive
A FULLY-leased refurbished Torquay mixed-use complex on the flourishing Surf Coast has sold in an off-market transaction for $40.06 million.
Home to sports and lifestyle giant, Boardriders Inc, 27 Baines Crescent in Torquay sits around 21km south of Geelong and 97km south west of the Melbourne CBD, at the gateway to the Great Ocean Road.
Located on a 19,550sqm site with parking for 202 cars, the 6,096sqm building boasts a very long WALE of 12-years and a building footprint of just 4,000sqm.
Paul Burns from Fitzroys negotiated the $40.06 million off-market sale between the vendor, boutique fund manager IP Generation, and a local private investor.
The investor purchased the property on a 5.59% yield, after the private expressions of interest campaign became competitive after attracting numerous bids.
“We identified value-add opportunities at 27 Baines Crescent, consistent with our investment strategy, and are very pleased with the outcome of the sale,” said Chris Lock, chief executive at IP Generation.
IP Generation purchased the property from Boardriders back in 2019, transforming the property from the head office of the parent company of Quiksilver and Billabong into the mixed-use multi-tenant development.
Beyond Boardriders, tenants at the property include Sou’west Brewery, flexible workspace provider Surf Coast Social, State Government-funded entity GORCAPA (Great Ocean Road Coast & Parks Authority), The Bathhouse and a pilates and yoga fitness studio Core Plus.
“Torquay has a tightly confined commercial precinct which is experiencing unprecedented demand from the influx of ‘sea changers’ in response to COVID and flexible working arrangements,” said Burns.
The Surf Coast is Australia’s the seventh-fastest growing LGA, according to the 2021 Census.
With the recently adopted Torquay-Jan Juc Retail and Employment Land Strategy forecasting the Torquay-Jan Juc area population to grow by 12,000-plus residents by 2036.
“Torquay is the largest settlement in the Surf Coast region, and Commercial zoned land is almost fully occupied. The purchaser recognised the excellent long-term rental prospects and potential of the site, and the ultra-rare opportunity to gain a foothold in one of Australia’s fastest-growing regions,” added Burns.
“This was reflected in the momentum built up during the off-market campaign. This transformative period for the Surf Coast will continue to have a profound effect on commercial property market demand.”
The Torquay-Jan Juc Retail and Employment Land Strategy, will also see Baines Crescent rezoned from Industrial 3 to Commercial, with the process expected to take less than 12 months.
“This property is expected to be one of the preferred sites for any new major tenants seeking accommodation in Torquay,” concluded Burns.
“An indicative scheme for an additional building on the site has been prepared, the dearth of alternative sites and this properties location make it a prime target for new tenants.”
