Centuria Capital Group buys Logan Super Centre for $115m

The real estate funds manager is doubling down on larger format retail centres which it says are in high demand due to construction constraints.

Centuria Capital Group has snapped up the Logan Super Centre in south-east Queensland for $115m.

Real estate funds manager Centuria Capital Group has snapped up the Logan Super Centre in south-east Queensland for $115m in a sign of the heat in the large format retail (LFR) market.

The 27,000 sq m two-storey asset is Centuria’s largest LFR transaction this financial year, and one the company had kept a close eye on for quite some time, said co-chief executive Jason Huljich.

The centre was sold by the listed HomeCo Daily Needs REIT in a deal brokered by CBRE’s Simon Rooney.

Logan Super Centre, which was built in 2007, is 25km south of Brisbane and 57km north of the Gold Coast and sits next door to an Ikea.

“It’s a great scene, it’s very modern and Logan’s got above average growth … it’s one of the highest growing regions in Queensland,” Mr Huljich said. “We own about 31 large format retail centres around Australasia and we’ve seen a really good amount of growth. We’ve got hardly any vacancy across the entire portfolio and a lot of our national tenants are looking to expand so we’re very bullish on the outlook for LFR.”

About 93 per cent of gross rental income from the 15-year-old Logan Super Centre came from ASX-listed and national retail stores.

The new asset will underpin a new fund, the Centuria Logan Super Centre Fund, which is forecast to have an annual distribution of 8 per cent, paid monthly.

The fund, which is seeking to raise $71m, will open to retail and wholesale investors from mid-March on five-year terms with a minimum invest of $50,000.

Centuria is banking on major growth in Queensland in part due to major infrastructure projects, the expansion of Logan Hospital and further investment in the sunshine state associated with the 2032 Brisbane Olympics.

Centuria said it had picked up the asset at a 22 per cent discount to replacement costs.

The site, which sits at 3525-3537 Pacific Highway, Slacks Creek Qld, boasts Freedom, Fantastic Furniture, Spotlight and Anaconda are but four of the 26 total retail stores. There’s also a car wash and 600-car park.

Mr Huljich said construction constraints and a limited number of LFR sites had driven up demand from retail tenants across the country.

“Currently, the domestic LFR sector is benefiting from strong macroeconomic tailwinds, underpinned by a national increase across population, employment and consumer spending,” he said. “Notably, overseas migration has driven demand for ‘durable goods’ expenditure associated with establishing new households.”

The acquisition marks Centuria’s third over the past 12 months following the acquisition of Halls Head Central in WA for $70m in May and the $35m acquisition of Manning Mall in NSW in October.

CBRE’s Mr Rooney said the transaction “demonstrates the continued demand and ready liquidity for well-located, LFR assets that provide in-built fixed annual rental income in addition to strategic landholdings”.

“In the case of Logan SuperCentre, the asset’s exceptional fundamentals and strategic location fronting the Pacific Highway, coupled with a supportive mixed-use zoning to facilitate value-add initiatives, were key investor drawcards,” he said.

The deal was the largest large format retail sale nationally since late 2022, with just six centres above $50m sold across Australia in 2024, including Banjo Bond’s Cosgrove Group buying in NSW.