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Centuria buys $115m Logan Super Centre

Biggest LFR transaction for FY25 YTD1

  • Securing asset at c.22% discount2 to replacement cost; LFR benefiting from short-medium term tailwinds
  • 93% of rental income derived from ASX-listed and national retailers incl Freedom and Fantastic Furniture
  • Acquisition underpins new single-asset unlisted fund, targeting 8% forecast average distribution

Australasian real estate funds manager, Centuria Capital Group (ASX:CNI or “Centuria”), has secured the c.27,000sqm, two-storey Logan Super Centre in Brisbane for $115 million cementing it as the biggest LFR transaction by value and size within FY25 year to date.

The property, located at 3525-3537 Pacific Highway, Slacks Creek Qld, will underpin the single-asset, unlisted Centuria Logan Super Centre Fund (“Fund”), which will be open to retail and wholesale investors from mid-March 2025.

Centuria is acquiring the asset at a c.22% discount2 to replacement cost. It provides a robust, diversified tenant profile with 93% of the centre’s gross rental income derived from ASX-listed and national retailers.

Anchor tenants include Freedom, Fantastic Furniture, Spotlight and Anaconda 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 delivers a 3.4-year WALE (by income) and 100% occupancy3.

Bruce McCully, Centuria Head of Retail, said, “We are extremely pleased to secure this high-quality destination LFR centre within a key, growing southeast Queensland market. 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.”

According to CBRE, strong tailwinds for LFR are anticipated with sales expected to increase from c.$550 million to $1.6 billion by 2041.

Jason Huljich, Centuria Joint CEO, added, “Currently, the domestic LFR sector is benefiting from strong macroeconomic tailwinds, underpinned by a national increase across population, employment and consumer spending. 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.”

According to Deep End Services, local average retail expenditure is anticipated to grow by 4.1% p.a.4, underpinned by strong population growth forecasts. Currently, the Logan Super Centre has a Main Trade Area (MTA) population exceeding 413,0005 and has grown 2.4% p.a. during the past eight years, which outpaces the Queensland average rate of 2.1%, with further growth expected in the future.

Further local economic fundamentals include ongoing infrastructure projects such as the expansion of the Logan Hospital and the construction associated with the 2032 Brisbane Olympics are all anticipated to add significant value and enable continued growth.

The Logan Super Centre is Centuria’s third retail acquisition in the past 12 months having secured the c.$70 million Halls Head Central, WA in May 2024 and the $35 million Manning Mall, NSW in October 2024.

The Logan Super Centre first opened in March 2007. It complements a well-established IKEA store on the neighbouring site, providing a destination for homewares.  The centre benefits from direct exposure to Pacific Highway, providing ease of access to both the Brisbane CBD (25km) and the Gold Coast (57km).

Centuria is expected to open its equity raise for the Centuria Logan Super Centre Fund on 10 March 2025. The Fund will provide an initial five-year term and is expected to be open to retail and wholesale investors. It is targeting a forecast average annual distribution of 8.00%6, paid monthly. The Fund has a targeted equity raise of c.$71 million with investments starting from $50,000.

Settlement of the property is anticipated in late May 2025. CBRE’s Simon Rooney facilitated the transaction.

  1. By value
  2. Property Insurance Reinstatement Cost Assessment (excl. GST) provided by Napier & Blakeley as at 4 February 2025. Inclusive of land estimated at $300/sqm
  3. As at 30 May 2025
  4. Projected average retail expenditure growth per annum to 2033. Source Deep End Services Report January 2025
  5. Total trade area persons in June 2024. Source: Deep End Services Report January 2025
  6. Distribution will be paid if declared by the responsible entity for the Centuria Logan Super Centre Fund, Centuria Property Funds No.2 Limited (ABN 38 133 363 185, AFSL 340304), and will be subject to the terms, assumptions and risks set out in the PDS. The forecast distribution rate is predictive in nature and is subject to assumptions, risks and circumstances (both known and unknown) outside of the control of the Fund. These assumptions include that all tenants will satisfy their contractual obligations under their respective leases within a timely manner, there are no significant unforeseen capital costs or material changes to the Fund’s financial obligations. The actual returns may differ from the target/forecast return. The responsible entity of the Fund does not guarantee the performance of the Fund, the repayment of capital or any income or capital return. Past performance is not reliable indicator of future performance. In addition, given the current volatility in interest rate forecasts, should interest rates normalise at higher (or lower) than forecast levels, target/forecast distributions may be revised. 100% tax deferred for the first four years reverting to 90% in year five.