Funds manager Centuria Capital Group (ASX: CNI) has paid $115 million for the Logan Super Centre south of Brisbane in what the group says is the biggest large-format retail transaction (LFR) so far in FY25.
The property, acquired from the HomeCo Daily Needs REIT and currently known as HomeCo Logan, is located next to IKEA fronting the Pacific Highway at Slacks Creek. It is the third retail acquisition by Centuria in the past 12 months.
Comprising 27,000sqm, the two-storey Logan Super Centre counts Freedom, Fantastic Furniture, Spotlight and Anaconda among its major tenants, in addition to 22 large format retailers, two speciality stores, a kiosk, car wash pad and more than 600 on-grade car parks.
The property, which opened in 2007, has been acquired on a 3.4-year WALE (weighted average lease expiry) and 100 per cent occupancy, with 93 per cent of the centre’s gross rental income derived from ASX-listed and national retailers.
Centuria Capital notes that the acquisition has been struck at a 22 per cent discount to replacement cost and that the property will be owned by the unlisted single-asset Centuria Logan Super Centre Fund, which will be open to retail and wholesale investors from mid-March.
“We are extremely pleased to secure this high-quality destination LFR centre within a key, growing southeast Queensland market,” says Bruce McCully, Centuria’s head of retail.
“Logan Super Centre stands out for its high-quality presentation and mix of high calibre retailers. This asset is a fantastic addition to our Large Format Retail portfolio which currently include 31 centres throughout Australasia.
“More specifically, the Logan Super Centre provides an opportunity to add value through our proactive inhouse asset management as well as future development optionality with the potential to create an additional 3,000sqm of retail space on the upper floor.”
The acquisition of Logan Super Centre comes on the heels of Centuria paying $70m for the Halls Head Central shopping centre south of Perth in May last year and $35 million for Manning Mall at Taree in regional NSW in October.
The latest deal was negotiated by CBRE’s Simon Rooney.
“Currently, the domestic LFR sector is benefiting from strong macroeconomic tailwinds, underpinned by a national increase across population, employment and consumer spending,” says Jason Huljich, the joint-CEO at Centuria.
“Notably, overseas migration has driven demand for ‘durable goods’ expenditure associated with establishing new households.
“This demand, coupled with limited new LFR supply, resultant of construction constraints, is anticipated to support strong occupancy rates in the near to medium term.”
Centuria plans to open a planned $71 million equity raise for Centuria Logan Super Centre Fund to wholesale and retail investors on 10 March 2025, with the fund providing an initial five-year term, targeting an average annual distribution of 8 per cent.
The acquisition is expected to settle at the end of May.
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