Mute Pause Play Play Volume Close Download edit Close Email Facebook filter Instagram Linked In Linked In Close Next Scroll to move Touch to move Phone Open X Search Zoom Search
Chadstone Homemaker Centre fund launches
Back to media centre

Centuria eyes growth in LFR sector

$86m Chadstone Homemaker Centre fund launches

  • Centuria’s LFR platform1 grows to $1.8bn, 99% occupancy across 37 assets
  • LFR market supply-demand imbalance: 3.1% vacancy2, 21% rental growth since COVID2
  • Sector tailwinds: expanding population, housing growth, limited future supply, low vacancy, rental growth
  • Chadstone Homemaker Centre Fund: five-year term, 7.00%pa initial forecast distribution6

Australasian real estate funds manager, Centuria Capital Group (ASX: CNI or “Centuria”), has confirmed its bullish optimism for the domestic large format retail (LFR) sector with its intention to further expand its LFR platform beyond its recent c.$86 million acquisition of the Chadstone Homemaker Centre in Victoria.

Centuria’s LFR portfolio has expanded to $1.8 billion, providing a 3.4-year weighted average lease expiry (WALE) and 99% occupancy across its 37 LFR assets.

Centuria believes the sector’s supply-demand imbalance generates attractive tailwinds with new LFR floorspace reaching a 10-year low in 2025, resulting in a tight national vacancy of 3.1% in 2024/20252. Furthermore, prohibitively high construction costs contribute to limited forward supply despite Australia’s expanding population fuelling housing growth and, subsequently, demand for household products provided by LFR retailers2.

These market conditions have contributed to national LFR rents rising 21% since COVID, currently averaging $365/sqm, with further rental growth anticipated due to persistent, strong tenant demand, limited new supply2 and population growth.

Jason Huljich, Centuria Joint CEO, said, “Centuria diversified into the retail sector in 2021 and we’ve since continued to grow our LFR vertical. The pandemic accelerated DIY home improvement trends but we’ve also seen a shift in Australians’ lifestyle, with a focus on home entertainment and outdoor living, which LFR retailers cater to.

“This sector also provides resilient, consistent demand for goods and services such as hardware, appliances, and home improvement supplies. Current market metrics coupled with further sector tailwinds gives us a high conviction for the domestic LFR sector and we are looking to expand our portfolio throughout Australasia.”

Research from CBRE shows that between January 2019 and December 2025, spending on furnishings and household equipment increased by 37%2. This rising demand has created very favourable conditions for LFR rental growth.

Sameer Chopra, CBRE’s Head of Pacific Research, said, “Large format retail has seen the greatest amount of rental growth, significantly outpacing all other retail asset classes. The LFR sector is experiencing yield compression, driven by strong investor demand and tight supply. After normalising from record lows post-COVID, average nationwide yields are currently 6.19%, with further compression anticipated. In particular, Melbourne is expected to maintain the tightest yield, followed by Sydney.

“Resilient household goods retail sales, tightening availability of prime LFR space and increased retailer expansion activity, particularly from homewares and bulky goods operators, are being supported by strong housing market turnover. Looking ahead, continued population growth and constrained supply pipelines are expected to underpin further rental growth across Australia’s LFR sector.”

Nationwide, the LFR sector includes 112 centres with more than 2.1 million square metres3 of net lettable area.

Centuria recently exchanged contracts to acquire the Chadstone Homemaker Centre – an inner-urban asset in the tightly held southeast Melbourne retail precinct. The 19,574sqm4 LFR property is anchored by Bunnings, is 100% occupied and has a 4.23-year WALE. Other key retailers include Freedom Furniture, e&s, The Good Guys and Revo Fitness.

Andrew Essey, Centuria’s Chief Investment Officer, said, “This was a rare opportunity to secure a well-performing LFR asset, in a blue-chip location within the tightly held Chadstone retail precinct, on highly compelling investment metrics. The acquisition has expanded Centuria’s LFR platform to $1.8 billion and we maintain a strong conviction in this sector, which is underpinned by robust tailwinds including population growth, limited future supply, low vacancy and rental growth – all supportive of rental growth.”

The Centuria Chadstone Homemaker Centre Fund is a new single-asset, closed-ended unlisted fund providing an initial five-year term5 and an initial forecast distribution of 7.00% p.a. for FY27 and FY28, paid monthly6. The offer opens on 9 March 2026 with investments starting from $50,000.

Centuria NZ also recently announced its new Centuria NZ Large Format Retail No.1 Trust, an unlisted fund comprising the newly acquired NZ$42 million Hornby Mega Centre, in Christchurch, as well as the NZ$77 million Southgate Shopping Centre, in Auckland.7

In February 2025, Centuria acquired the $115 million Logan Super Centre in Southeast Queensland for a single-asset fund, which was fully subscribed.

1. Centuria’s Large Format Retail platform as at 31 December 2025.

2. Source: CBRE Large Format Retail Markets Research Report.

3. Source: Property Council Australia Shopping Centre Database, excluding stand-alone Bunning Warehouses and other LFR retailers that are often located in similar precincts.

4. Size by Gross Lettable Area (GLA).

5. The Fund term may be extended – refer to the terms in the PDS and IM.

6. Forecast distribution for FY27 is for 1 July 2026 – 30 Jun 2027 are as 23 February 2025 and may be subject to change between that date and the date the PDS is issued. Forecasts are based on the assumption that settlement of the asset will occur on or around 17 June 2026. Forecast distributions shown are annualised and pre-tax. Distributions will be paid if declared by the Centuria, as responsible entity. and will be subject to the terms, assumptions and risks set out in the PDS and IM. 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. Centuria 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.

7. Centuria Funds Management (NZ) Limited is the issuer of Centuria NZ Large Format Retail No.1. A copy of the Product Disclosure Statement will be available from Centuria NZ’s website (www.centuria.co.nz) once the offer opens in New Zealand on 7 March 2026. The offer will open in Australia on 13 March 2026. Nothing in this release constitutes an invitation to subscribe for, or an offer of, units, shares, securities or other financial products to any person, in any country, in which it would be unlawful to do so.

Next