99 Bikes Sell-Off: $17M Store Liquidation | Australian Cycling News

99 Bikes Portfolio Fetches $17.25 Million, Ashgrove Store Soars $1.11 Million Over Reserve

A portfolio of eight 99 Bikes stores across Australia has sold for a total of $17,246,000, demonstrating robust demand for retail investments. The auction, conducted by Stonebridge Property Group, saw particularly strong bidding on the Ashgrove, Brisbane location, which exceeded its reserve price by $1.11 million after attracting 68 bids.

The successful sale underscores the strength of the australian cycling market and the appeal of established retail brands to investors. The portfolio generated a blended yield of 5.26 percent,with individual sale prices peaking at $5.61 million.

Did you know? – 99 Bikes began as a small Brisbane startup in 2007, aiming to showcase 99 bikes in its first store. It has sence grown into Australia’s largest bike retailer with over 60 locations.

From Brisbane Startup to National Chain

Founded in 2007 in Brisbane by Matt Turner, son of Flight Centre founder graham “Skroo” Turner, 99 Bikes began with a modest ambition – to fit 99 bikes into its first store. The company has since expanded to over 60 locations nationwide, becoming Australia’s largest bike retailer.

The auction process attracted important interest, with 336 total inquiries and 40 registered bidders, signaling “strong national demand” for the assets. Each store was offered individually, with new lease terms ranging from three to ten years.

Pro tip: – Retail investments with strong tenant covenants and strategic locations are highly sought after by investors, especially those with shorter lease terms offering potential for future growth.

Investor Appetite Driven by Strong Tenant & Location

“The sale of all eight assets and 100 per cent clearance rate at auction highlights the depth of demand for quality retail investments,” stated a Stonebridge executive. “Investors are clearly prioritizing strong tenant covenants and strategically located retail positions – particularly given most assets held shorter lease terms.”

The campaign also drew considerable attention from international investors. According to another Stonebridge executive, over 55 percent of the total portfolio transaction value was secured from Asian investors, highlighting the firm’s expanding reach through its Asia Practice team.

Pedal Group Performance & Ownership Structure

99 Bikes operates as a wholly owned subsidiary of Pedal Group, which is 47 percent owned by Flight Centre.The Turner family maintains approximately a 35 percent stake, with employees owning the remaining portion of the business.

Pedal Group reported a net profit of $6.3 million for FY25, a ample increase from the $2.16 million loss recorded the previous year. Sales revenue also rose, reaching $334.1 million, up 8.76 percent from $307.2 million.

Flight Centre and the Turner family initiated a review of future ownership options for the business in September, engaging advisory firm Grant Samuel to explore potential partnerships and proposals. Flight Centre has affirmed its intention to maintain an investment in the company.

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The strong performance of 99 Bikes and the successful auction results suggest a positive outlook for the company and the broader cycling retail sector in Australia.

Reader question: – What impact do you think increased international investment will have on the australian cycling retail market in the long term? Share your thoughts!

Why,Who,What,and How did it end?

Why: The article reports on the sale of a portfolio of 99 bikes stores due to strong demand for retail investments and the overall health of the Australian cycling market. It also details the financial performance of the parent company,