Centuria Acquires $115M Logan Super Centre in Largest Large-Format Retail Deal of FY25 to Date

Centuria (ASX: CNI) has acquired the Logan Super Centre, an approximately 27,000-square-metre large-format retail centre in Slacks Creek, Queensland, for $115 million — marking the largest large-format retail (LFR) transaction by both value and size in the fiscal year to date, the company announced.

The property, located at 3525-3537 Pacific Highway, Slacks Creek, will underpin the newly established Centuria Logan Super Centre Fund, a single-asset unlisted fund open to retail and wholesale investors from mid-March 2025. Settlement of the property is anticipated in late May 2025. CBRE's Simon Rooney facilitated the transaction.

Acquisition Details

Centuria is acquiring the asset at approximately a 22% discount to replacement cost, based on a Property Insurance Reinstatement Cost Assessment provided by Napier & Blakeley as of February 4, 2025, exclusive of GST and inclusive of land estimated at $300 per square metre. The two-storey centre first opened in March 2007 and currently operates at 100% occupancy as of May 30, 2025, with a weighted average lease expiry (WALE) of 3.4 years by income.

Anchor tenants include Freedom, Fantastic Furniture, Spotlight, and Anaconda, alongside 22 large-format retailers, two specialty stores, a kiosk, a car wash pad, and more than 600 on-grade car parks. According to Centuria, 93% of the centre's gross rental income is derived from ASX-listed and national retailers. The property neighbours an IKEA store on an adjacent site.

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."

McCully also noted value-add potential: "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."

Fund Structure

The Centuria Logan Super Centre Fund is expected to open its equity raise on March 10, 2025, with a targeted equity raise of approximately $71 million and a minimum investment of $50,000. The fund will operate on an initial five-year term and is targeting a forecast average annual distribution of 8.00%, paid monthly. Distributions are 100% tax-deferred for the first four years, reverting to 90% in year five, subject to the terms and risks outlined in the product disclosure statement.

Centuria notes that the forecast distribution rate is subject to assumptions, risks, and circumstances both known and unknown outside of the control of the fund, including tenant performance, unforeseen capital costs, and interest rate movements. The responsible entity of the fund, Centuria Property Funds No. 2 Limited (ABN 38 133 363 185, AFSL 340304), does not guarantee the performance of the fund, repayment of capital, or any income or capital return.

Southeast Queensland Market Context

Jason Huljich, Centuria Joint CEO, cited macroeconomic tailwinds supporting the LFR sector as a key driver of the acquisition. "Currently, the domestic LFR sector is benefiting from strong macroeconomic tailwinds, underpinned by a national increase across population, employment and consumer spending," Huljich said. "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 CBRE, LFR sales are expected to increase from approximately $550 million to $1.6 billion by 2041. The Logan Super Centre's Main Trade Area population exceeds 413,000 as of June 2024, according to Deep End Services, and has grown at 2.4% per annum over the past eight years — outpacing the Queensland average of 2.1%. Local average retail expenditure is projected to grow at 4.1% per annum through 2033, per Deep End Services' January 2025 report.

Centuria also pointed to ongoing infrastructure investment in the region, including the expansion of Logan Hospital and construction activity associated with the 2032 Brisbane Olympics, as factors anticipated to support continued local economic growth. The centre benefits from direct exposure to the Pacific Highway, providing access to the Brisbane CBD approximately 25 kilometres to the north and the Gold Coast approximately 57 kilometres to the south.

Centuria's Retail Portfolio

The Logan Super Centre acquisition is Centuria's third retail transaction in the past 12 months. The firm previously acquired Halls Head Central in Western Australia for approximately $70 million in May 2024 and Manning Mall in New South Wales for $35 million in October 2024. Centuria's large-format retail portfolio spans 31 centres across Australasia.

Sources

Centuria Capital Group — Centuria Buys $115M Logan Super Centre