Boardriders has sold the Billabong headquarters in Burleigh Heads, Australia for approximately US$26 million.
The company will lease back the space from the new owners, a Singapore real estate trust, according to the Gold Coast Bulletin.
Boardriders is committed to staying in Burleigh Heads, and signed a 12-year lease for the building. The company is also investing money to remodel the space to accommodate the integration of the Quiksilver brand, SES has learned.
Boardriders has moved most of Quiksilver’s operations to Burleigh Heads but is keeping a satellite office in Torquay, where Quiksilver formerly had its Australian headquarters.
The sale and lease back strategy is common in business circles because it converts illiquid assets into cash while still retaining use of a property. A wide range of companies has implemented the strategy over the years including Citigroup, Deutsche Bank, AT&T and Bank of America.
