Centuria Capital Group, a prominent Australasian real estate funds manager, has successfully acquired the Logan Super Centre in Brisbane for a substantial $115 million. This acquisition, facilitated by CBRE, marks a significant milestone in the commercial property market, particularly in the Large Format Retail (LFR) sector.

Situated at 3525-3537 Pacific Highway in Slacks Creek, Queensland, the Logan Super Centre spans approximately 27,000 square meters across two floors. Centuria’s purchase of this property at a 22% discount to its replacement cost underscores the company’s strategic investment approach. With an impressive 93% of the center’s gross rental income coming from ASX-listed and national retailers, including major brands like Freedom, Fantastic Furniture, and Spotlight, the asset boasts a solid tenant profile.

Bruce McCully, Centuria’s Head of Retail, expressed enthusiasm about the acquisition, highlighting the premium quality and strategic location of the Logan Super Centre in the rapidly growing southeast Queensland market. The center’s diverse mix of reputable retailers positions it as a valuable addition to Centuria’s extensive Large Format Retail portfolio, which already encompasses 31 centers across Australasia.

Moreover, the Logan Super Centre presents opportunities for Centuria to enhance its value through proactive asset management and potential future development initiatives. The property’s existing offerings, such as ample on-grade parking and a 3.4-year Weighted Average Lease Expiry (WALE), contribute to its appeal among retailers and investors alike.

Industry experts project a positive outlook for the LFR sector, with substantial sales growth anticipated in the coming years. Factors such as population growth, increased consumer spending, and limited new supply in the market are expected to drive sustained occupancy rates and investment returns for stakeholders in the sector.

Centuria’s acquisition of the Logan Super Centre aligns with its broader retail investment strategy, following recent purchases of Halls Head Central in Western Australia and Manning Mall in New South Wales. The center’s strategic location between Brisbane and the Gold Coast, with direct access to the Pacific Highway, enhances its attractiveness to both customers and retailers.

As Centuria prepares to launch the Centuria Logan Super Centre Fund in March 2025, retail and wholesale investors will have the opportunity to participate in this high-potential asset. The Fund aims to provide investors with an average annual distribution of 8%, further solidifying its appeal in the market.

In conclusion, Centuria’s acquisition of the Logan Super Centre not only signifies a significant transaction in the commercial property sector but also underscores the company’s commitment to expanding its presence in key markets and delivering value to its investors and stakeholders. With a strong foundation and promising growth prospects, the Logan Super Centre is poised to contribute positively to Centuria’s portfolio and the broader retail real estate landscape.