HIGHGROVE SPENDS $5.35M TO EASE GROWING PAINS

HIGHGROVE SPENDS $5.35M TO EASE GROWING PAINS

GOLD COAST company Highgrove Bathrooms has splashed out $5.35 million to ease its growing pains, and help the company expand further into the national market.

The bathroom supply business, founded by Lindsay Sinclair a decade ago, has bought a 2.5ha industrial site at Molendinar where it plans to establish its new national headquarters and warehouse facility.

Highgrove employs about 25 head office staff who manage the company's back-room operations.

Highgrove, which started operations in Southport in 2005, has two Gold Coast outlets and is currently opening its 26th and 27th national store.

"It actually works really well for us because it takes a lot of the staffing issues out of the equation," he says.

"We really were looking for a property that could handle the growth we've had and cater for our future growth," he says.

The business, which is currently based at Molendinar, plans to move into the new headquarters in mid-July.

Highgrove plans to set up its operations across 4800sqm on Enterprise Street, while two buildings totalling 2100sqm on Industrial Avenue will be leased.

The $5.35 million sale to the Sinclairs was achieved despite an earlier sale campaign in 2013 achieving offers of between $4 million and $4.5 million.

"Assets of this size and nature are tightly held and in high demand considering there is currently very little available for sale in the region. The market has been on the improving trajectory since the beginning of 2013, which is evident by the number of offers we received and the increasing values.

"We are expecting similar market conditions for the remainder of the year, with a continued take up of leasing stock, which may see rents increase slightly. Owner occupiers are very active as they are starting to see some capital growth on existing properties and are buying now whilst borrowing conditions are so favourable.

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