ASX-listed investor Centuria Industrial REIT has acquired the Quiksilver and Billabong distribution and logistics facility in North Geelong for $22.8 million in an off-market deal.

The sale of the 21772sqm facility at 75-105 Corio Quay Rd was brokered by Fitzroys director Paul Burns on behalf of a private investor.

The facility, located on a 3.763-hectare site comprising two modern, high-clearance industrial warehouses and office buildings connected by a fully enclosed transit area, is used by the surfwear brand as its Asia Pacific distribution centre.

Centuria has snapped up the property, which was built in 2010, on an 8.2 per cent passing yield, with the tenant entering a new five-year lease last year on a deal that returns $1.87 million per annum with 3 per cent annual increases.

Burns said the consolidated Quiksilver and Billabong centre will see turnover at the facility go from around 4.5 million units to circa 10 million units once in full operation in the coming months.

“Industrial real estate is now among the most sought-after investment classes, and land values are expected to rise further in the coming years,” he said.

He added that growth in online shopping and demand for more efficient delivery and a bigger range of products across the retail industry has increased requirements for logistics systems and facilities.