Centuria Grows Real Estate Portfolio With $86M Chadstone Homemaker Centre Retail Acquisition

Centuria (ASX: CNI) has acquired the Chadstone Homemaker Centre in Victoria for approximately $86 million, launching a new single-asset unlisted fund tied to the property and signaling continued expansion in Australia's large format retail sector.

The Centuria Chadstone Homemaker Centre Fund is structured as a closed-ended vehicle with a five-year term and offers an initial forecast distribution of 7.00% per annum.

Centuria Grows Real Estate Platform to $1.8 Billion in Large Format Retail

The Chadstone acquisition brings Centuria's large format retail (LFR) portfolio to $1.8 billion across 37 assets, with a 3.4-year weighted average lease expiry (WALE) and 99% occupancy. The firm first diversified into the retail real estate sector in 2021 and has steadily expanded its LFR vertical since.

Jason Huljich, Centuria Joint CEO, said the pandemic accelerated trends that continue to underpin the sector. "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," Huljich said.

"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," he added.

Chadstone Homemaker Centre: Property Details

The Chadstone Homemaker Centre is located on Warrigal Road in Chadstone, Victoria. The property spans approximately 19,574 square meters of lettable area and is anchored by Bunnings Warehouse. No cap rate was disclosed.

LFR Market Conditions Drive Retail Real Estate Demand

Centuria cited a supply-demand imbalance in the LFR sector as a key driver of its acquisition strategy. National LFR vacancy stood at 3.1% in 2024/2025, while new LFR floorspace reached a 10-year low in 2025. National LFR rents have risen 21% since COVID, currently averaging $365 per square meter, with further rental growth anticipated.

Research from CBRE shows that between January 2019 and December 2025, spending on furnishings and household equipment increased by 37%, contributing to favorable conditions for LFR rental growth.

Sameer Chopra, CBRE's Head of Pacific Research, noted the sector's outperformance relative to other retail asset classes. "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%," Chopra said.

Centuria attributed the supply constraint to prohibitively high construction costs, which limit forward supply even as Australia's expanding population fuels housing growth and, in turn, demand for household products sold by LFR retailers. The firm said it intends to expand its LFR platform further beyond the Chadstone acquisition.

Fund Structure

The Centuria Chadstone Homemaker Centre Fund is structured as a closed-ended, unlisted vehicle with a five-year term, offering investors exposure to a single retail real estate asset. The fund's 7.00% per annum initial forecast distribution is positioned to capture income from the property's established tenancy base.

Centuria said it remains focused on further LFR acquisitions across Australasia as it looks to capitalize on the sector's supply constraints and demographic tailwinds.