BRISBANE: Centuria Capital Group (ASX: CNI), also known as Centuria, has acquired a $115 million large format retail (LFR) centre to launch a new single-asset, closed-ended fund, the Centuria Logan Super Centre Fund.
The Logan Super Centre, located 25km south of Brisbane’s CBD, is being purchased at approximately a 22% discount to its replacement cost. The centre offers future development options with potential for an additional 3,000 square meters of retail space.
Situated within a high-performing Southeast Queensland growth corridor, the Logan Super Centre houses prominent retailers such as Freedom, Fantastic Furniture, Spotlight, and Anaconda. The property includes 26 retailers and over 600 on-grade parking spaces. It boasts a weighted average lease expiry (WALE) of 3.4 years by income and 100% occupancy, with 93% of its tenant mix comprising ASX-listed or national retailers.
“This is the largest LFR transaction by value and size in FY25 to date,” said Jason Huljich, Centuria Joint CEO. “Currently, the domestic LFR sector benefits from strong macroeconomic tailwinds, driven by national increases in population, employment, and consumer spending. Overseas migration has notably increased demand for ‘durable goods’ associated with establishing new households. This demand, coupled with limited new LFR supply due to construction constraints, is expected to support strong occupancy rates in the near to medium term.”
The Centuria Logan Super Centre Fund will have an initial five-year term and will be open to retail and wholesale investors. It aims to deliver a forecast average annual distribution of 8.00%, paid monthly. The fund targets an equity raise of approximately $71 million, with investments starting from $50,000. A product disclosure statement for the fund is expected to be available in late February 2025 at www.centuria.com.au.
Centuria boasts one of the largest LFR portfolios in Australasia, with 31 centres across the region.