Australian real estate fund manager Centuria Capital has acquired the Logan Super Centre in Brisbane for A$115m (€69m), establishing a single-asset, unlisted fund due to open to investors next month.
The purchase price of the two-storey building represents a 22% discount to replacement cost, the manager said, adding that capital raising for the A$71m Centuria Logan Super Centre Fund is expected to begin next month.
Bruce McCully, Centuria head of retail, said: “This asset is a fantastic addition to our large format retail (LFR) portfolio which currently includes 31 centres throughout Australasia.
“More specifically, the Logan Super Centre provides an opportunity to add value through our proactive inhouse asset management as well as future development optionality with the potential to create an additional 3,000sqm of retail space on the upper floor.”
The Logan Super Centre is leased to listed companies and national retailers, accounting for over 90% of gross rental income.
Jason Huljich, Centuria joint CEO, said: “Currently, the domestic LFR sector benefits from strong macroeconomic tailwinds, driven by national increases in population, employment, and consumer spending. Overseas migration has notably increased demand for ‘durable goods’ associated with establishing new households.
“This demand, coupled with limited new LFR supply due to construction constraints, is expected to support strong occupancy rates in the near to medium term.”
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