99 Bikes property arm has secured a new warehouse in Bowen Hills to cope with surge in demand sparked by COVID-19

A leading bicycle company has spent $2.5m on a Brisbane warehouse in a bid to keep up with a huge spike in demand borne out of the COVID pandemic.

A SURGE in the number of cyclists motivated to get out and about during the COVID-19 restrictions has sparked a leading bicycle retail to power up its expansion plans.

Pedal Group Property, which is an entity associated with 99 Bikes controlled by Flight Centre boss Graham Turner and his son Matthew, paid $2.5m for an office/warehouse at 58 Abbotsford Road, Bowen Hills, next to two other properties it owns.

Supply shortage, demand surge leads to bicycle shortage

Safety warning over bicycle boom

Pedal Group general manager Ged Collins said it was a logical move.

“With COVID the bike industry has boomed and there’s a need for us to expand,” he said.

“Our wholesale arm which is called Advance Trading will use the warehouse component of the new building for parts and accessories and they will bring all that up from a third party warehouse in Melbourne.

“The front office of 58 Abbotsford Road will be used as our warranty service centre.”

According to a Transurban survey in July use of the bicycle as a transport mode is up 36 per cent in Brisbane and expected future usage was up 71 per cent.

Pedal Group Property’s new building is next door to a 99 Bikes outlet at 62 Abbotsford Road and it also owns an office building at 66 Abbotsford Road.

Pedal Group Property’s general manager Ged Collins.

Mr Collins said some staff will move “two doors down” to the new office.

“At the moment we’re in the process of getting the new warehouse racked up and the office refurbished,” he said.

“The 99 Bikes store will expand into warehouse space at the back.”

Cushman & Wakefield’s Michael Gard struck the deal for the 882sq m office/warehouse at 58 Abbotsford Road.

He said the building was on a 1171sq m site and with the adjoining properties Pedal Group saw “upside in amalgamating an additional land parcel.”

“Bowen Hills has been in strong demand over the course of 2020 with strong interest from investors, owner occupiers and developers wanting to secure property within the area,” he said.

Michael Gard and Ged Collins at 58 Abbotsford Road, Bowen Hill

Additionally over the last few months, Mr Gard has negotiated a significant amalgamation of seven individual properties from multiple owners for $10.23m.

The sites total a land area of 3276sq m on Campbell, Edgar and Hazlemount streets in Bowen Hills.

“Bowen Hills is an outstanding inner city suburb that is undergoing significant gentrification,” Mr Gard said.

“We continue to see strong demand from all buyer types looking to purchase within the suburb”