This article is from the Australian Property Journal archive
SURFWEAR retailer Billabong has secured a new lease in Surfers Paradise by doubling its street front presence at Circle on Cavill's retail precinct.
The company has signed a new lease on its existing high-profile store in Circle on Cavill as well as inked the deal on a new lease for its Surf Dive & Ski business.
Negotiating agent CBRE’s Kevin Ramsey said the Billabong deal comes on the back of a surge in interest in retail precinct following the opening of the new Woolworths supermarket last month.
Ramsey said the deal was a strong show of faith by the retailer in the central Surfers Paradise tourism precinct, and Circle on Cavill in particular.
Billabong – a founding tenant of Circle on Cavill – has signed a new seven-year lease on its existing 289 sqm surf wear outlet in the retail centre. The company also has signed a seven-year lease, plus option, on 249 sqm opposite its existing store, previously occupied by a shoe retailer.
Billabong will refurbish the space to make way for a new Surf Dive & Ski outlet in October.
Circle on Cavill owner EG Funds Management has been undertaking a major refurbishment of the retail centre since securing Woolworths as an anchor tenant with an over 2,800 sqm tenancy.
EG Funds Management has previously said it intended to reposition Circle on Cavill in the retail market with a focus on entertainment and dining.
EG bought the centre in 2010 on a yield of 9.5%, once fully let, the property is expected to generate a return of more than 13% for the fund.
Property Review