Centuria Capital Group (ASX: CNI) has secured a $115 million large format retail centre in Logan, Queensland, to seed its new single-asset, closed-ended fund, the Centuria Logan Super Centre Fund.
The Logan Super Centre, located 25 kilometres south of Brisbane’s CBD, was acquired at an estimated 22 percent discount to replacement cost. The property is fully occupied with 26 tenants, including national retailers Freedom, Fantastic Furniture, Spotlight, and Anaconda. It has a weighted average lease expiry of 3.4 years by income and features over 600 on-grade car parks.
The acquisition provides development opportunities, with plans for an additional 3,000 square metres of retail space.
The new fund will offer an initial five-year term, with a starting distribution yield of 8.0 percent, paid monthly. Centuria is targeting a $71 million equity raise, with a minimum investment of $50,000. The product disclosure statement for the fund is expected to be available in late February 2025.
Jason Huljich, Centuria’s joint CEO, described the acquisition as the largest LFR transaction of the financial year to date and noted the sector’s strong fundamentals.
“Currently, the domestic LFR sector is benefiting from strong macroeconomic tailwinds, underpinned by a national increase across population, employment, and consumer spending. Notably, overseas migration has driven demand for ‘durable goods’ expenditure associated with establishing new households,” Huljich said.
Centuria holds one of Australasia’s largest LFR portfolios, comprising 31 centres.
