$115 million sale marks Australia’s biggest Large Format Retail Centre deal since late 2022

Logan SuperCentre in Brisbane’s south has sold for $115 million, marking the deal as Australia’s biggest Large Format Retail (LFR) transaction in more than two years.

CBRE’s Simon Rooney exclusively managed the off-market deal amid ongoing investor interest in LFR assets.

Mr Rooney noted, “This 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.”

The transaction is the largest LFR sale nationally since late 2022, with just six centres above $50 million sold across Australia in 2024. Centuria Capital Group (ASX: CNI) acquired the asset for a new unlisted fund.

Located 25km south of the Brisbane CBD, Logan SuperCentre is a two-level, fully enclosed 27,117sqm LFR asset securely anchored by leading major national chain retailers Spotlight, Anaconda, Fantastic Furniture, Freedom Furniture, Snooze and Early Settler Furniture.

The centre occupies a high profile 26,800sqm site, with outstanding frontage to Pacific Highway, the main arterial road linking Brisbane and the Gold Coast.

Logan SuperCentre benefits from its co-location with Logan IKEA, the largest in Australia and one of only two within Brisbane, forming a dominant homemaker precinct.

The precinct services a high growth Total Trade Area of 1.1 million residents, which is forecast to record strong growth of 1.6% p.a. through to 2041, providing a strong tailwind for sales performance.

The large format retail spend in the Total Trade Area was estimated at $549.1 million in December 2022 and is forecast to record strong annual growth of 5.9% to reach $1.6 billion by 2041.

Together with the major tenants, Logan SuperCentre is 99.9% leased, with 93% of the centre’s gross rental income derived from ASX-listed and national retailers.

Mr Rooney noted that the overall retail supply pipeline had reduced considerably across Australia, particularly in Queensland, LFR retail sector, where supply over the four years to 2024 had been well below the pre-COVID ten-year average (2010 – 2020).

“Limited development supply and likely interest rate reductions in 2025, coupled with robust population growth, is expected to underpin ongoing investor interest in the LFR asset class, which has been traditionally tightly held and rarely traded,” Mr Rooney said.