Pacific Brands takes lease on fringe
The clothing retailer, whose marquee brands include Bonds, Hard Yakka, Holeproof and Mossimo, is consolidating some of its smaller suburban operations but will continue to keep its head office in Hawthorn.
The deal for 4998 square metres will see Pacific Brands occupy the bulk of the 7322 sq m Challenger building at 187 Todd Road. The other major tenant is George Weston Foods.
The nine-year lease on its new operations facility also suggests the once-troubled group is optimistic about its future.
Pacific Brands posted a profit of $38.9 million for the first half of 2012, after steep losses on the back of falling sales, write-downs and restructuring costs. They also announced plans early this year to expand into the US, Britain and Asia.
"The building at Todd Road appealed to the company's size and location requirements and the added enticement of competitive lease terms," said Colliers International's Ben McKendry, who negotiated the deal along with Rob Joyes.
"The lease to Pacific Brands represents the biggest deal in the city fringe office market to date in 2013."
Colliers says the deal is a positive sign for the city fringe office market, which is the only segment, apart from the inner-east precinct, where the vacancy rate has fallen in the first quarter of 2013. The vacancy rate on the city fringe is now 7.19 per cent, which is above historical trends.
cvedelago@theage.com.au
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Pacific Brands signed a nine-year lease for 4,998 square metres at the Challenger building (7,322 sq m total) at 187 Todd Road in Port Melbourne, occupying the bulk of the building.
The large, long-term lease signals Pacific Brands is consolidating suburban operations, committing to a major operations facility and showing confidence in its future after returning to profit — all points investors watch for stability and growth.
Colliers International described the Pacific Brands lease as the biggest office leasing deal in the city fringe market to date in 2013, making it a notable transaction for that precinct.
The other major tenant in the Challenger building is George Weston Foods; Pacific Brands will occupy the majority of the building's space.
Pacific Brands posted a profit of $38.9 million for the first half of 2012 after earlier steep losses tied to falling sales, write-downs and restructuring costs, and said it plans early this year to expand into the US, Britain and Asia.
Colliers International’s Ben McKendry and Rob Joyes negotiated the deal; Colliers says the Todd Road building appealed because of its size, location and competitive lease terms.
Colliers said the deal is a positive sign for the city fringe market, which was one of only two precincts (along with the inner-east) to see vacancy fall in Q1 2013; the city fringe vacancy rate was reported at 7.19%, which remains above historical trends.
The article names several of Pacific Brands’ marquee labels: Bonds, Hard Yakka, Holeproof and Mossimo.
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